Cole v. Smyth

HARRIS, District Judge.

Plaintiff, formerly the owner of two Valencia orange groves which he sold January 3, 1944, seeks to recover taxes paid defendant in connection with the sale of said groves. It is plaintiff’s contention that the entire price realized constitutes income attributable to the capital structure. Defendant ruled that of the $25,000 realized by plaintiff, $7,356.75 was chargeable to the Valencia oranges then growing on the trees and that such money must be treated as ordinary income as opposed to the gain from the sale of the land and trees which constitutes capital gain under…