Redwood Empire Sav. & Loan Asso. v. Commissioner
United States Tax Court
Held, a tract of undeveloped real estate located about 500 miles from the principal office of taxpayer, a California savings and loan association, was not property held for sale to customers in the ordinary course of the taxpayer's business, and loss on the sale thereof was a capital loss.
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Held, a tract of undeveloped real estate located about 500 miles from the principal office of taxpayer, a California savings and loan association, was not property held for sale to customers in the ordinary course of the taxpayer's business, and loss on the sale thereof was a capital loss. Held, further, an amount paid to settle a lawsuit, brought by the former owners of the property, and legal fees incurred in connection therewith, were capital expenditures not deductible under sec. 162(a), I.R.C. 1954.
1Opinion of the Court
Drennen, Judge:
Respondent determined the following deficiencies in petitioner’s corporate income taxes for the taxable years ending December 31:
Year Deficiency
1969. $11,172.00
1970. 9,063.34
1971. 1,607.85
1972. 48.573.52
Total. 70,416.71
Certain concessions having been made by the parties, three issues remain to be decided.
First, whether the Malibu Springs Ranch was held by petitioner as a capital asset or as property "primarily for sale to customers in the ordinary course of [its] trade or business” under section 1221(1), I.R.C. 1954.1 Dependent upon resolution of this question is the…
2Cases cited27 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Higgins v. CommissionerSupreme Court of the United States · 1941
- United States v. GilmoreSupreme Court of the United States · 1963
- Malat v. RiddellSupreme Court of the United States · 1966
22 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Ditunno v. CommissionerUnited States Tax Court · 1983
- Cottle v. CommissionerUnited States Tax Court · 1987
- Redwood Empire Savings & Loan Association v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- Bradford v. CommissionerUnited States Tax Court · 1978
- Von Hafften v. CommissionerUnited States Tax Court · 1981
19 more not listed; retrieve them via the Exa API.