Eugene J. Burrell and Alice W. Burrell v. John L. Fahs, United States Collector of Internal Revenue for the District of Florida

JONES, Circuit Judge.

The appellants, husband and wife, who will herein be called the taxpayers, owned and operated a citrus grove and the equipment required in the operation of it. The grove and equipment were sold on July 2, 1945, for $299,000. The sales price exceeded the adjusted cost basis by $129,551, as was shown by a partnership income tax return filed by the taxpayers. They reported this excess of sales price over cost in their Federal income tax returns as capital gain. The Commissioner of Internal Revenue made a determination that $94,006 of the sales price should be allocated to…