Biedermann v. Commissioner
United States Tax Court
In 1952, petitioners bought 114 acres of undeveloped land, intending to subdivide the land, improve the subdivided sites, and then sell those sites to purchasers who wanted to build homes. In 1958, petitioners bought approximately 9 acres of land with the same intention. In 1958, petitioner Gustav Biedermann read a magazine article which gave him his first "inkling" that the State of Maryland might want part of his land for a proposed park.
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In 1952, petitioners bought 114 acres of undeveloped land, intending to subdivide the land, improve the subdivided sites, and then sell those sites to purchasers who wanted to build homes. In 1958, petitioners bought approximately 9 acres of land with the same intention. In 1958, petitioner Gustav Biedermann read a magazine article which gave him his first "inkling" that the State of Maryland might want part of his land for a proposed park. Thereafter officials of Baltimore County, Md., where the land was located, indicated to petitioners that they could not develop that portion of their land…
1Opinion of the Court
Wiles, Judge:
Respondent determined a $28,331.42 deficiency in petitioners’ 1968 income taxes. The sole issue is whether Gustav B. Biedermann (hereinafter petitioner) held certain property primarily for sale to customers in the ordinary course of his trade or business when it was condemned by the State of Maryland or whether he held that property as a capital asset. If he held it as a capital asset when it was condemned, he may defer recognition of párt of his gain under section 1033(a)1 and may treat the remainder of his gain, which he chose not to defer, as long-term capital gain realized…
2Cases cited8 opinions
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- Hawaiian Gas Products v. Commissioner of Int. Rev.Court of Appeals for the Ninth Circuit · 1942
- Commissioner of Internal Revenue v. Tri-S CorporationCourt of Appeals for the Tenth Circuit · 1968
- Juleo, Inc., a New Jersey Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1973
- Maddux Construction Co. v. CommissionerUnited States Tax Court · 1970
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3Cited by18 opinions
- Daugherty v. CommissionerUnited States Tax Court · 1982
- Andrew Crispo Gallery, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1994
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- Andrew Crispo Gallery v. CommissionerUnited States Tax Court · 1992
- TAIYO HAWAII CO. v. COMMISSIONERUnited States Tax Court · 1997
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