Buena Vista Farms, Inc. v. Commissioner
United States Tax Court
Held: B, a corporate farmer, held water primarily for sale in the ordinary course of its trade or business. Accordingly, the sale of 10 percent of its contractual right to receive payment in kind for water sold does not qualify as a sale or exchange of a capital asset under sec. 1221, I.R.C. 1954, and the gain attributable thereto is taxable as ordinary income.
1Opinion of the Court
Buena Vista Farms, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Buena Vista Farms, Inc. v. Commissioner
Docket No. 7173-74
United States Tax Court
68 T.C. 405; 1977 U.S. Tax Ct. LEXIS 93;
June 20, 1977, Filed
Decision will be entered for the respondent.
Held: B, a corporate farmer, held water primarily for sale in the ordinary course of its trade or business. Accordingly, the sale of 10 percent of its contractual right to receive payment in kind for water sold does not qualify as a sale or exchange of a capital asset under sec. 1221, I.R.C. 1954, and the gain attributable thereto…
2Cases cited18 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Hort v. CommissionerSupreme Court of the United States · 1941
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
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