Walter R. Laudenslager and Marguerite Laudenslager v. Commissioner of Internal Revenue

KALODNER, Circuit Judge.

This petition to review the decision of the Tax Court 1 presents the question whether amounts received by taxpayers under a contract for the excavation and removal of earth fill from their land constitute ordinary income, as the Tax Court held, or capital gain, as taxpayers contend.

The facts as found by the Tax Court are as follows:

On October 1, 1945, taxpayers, Walter R. Laudenslager and his wife Marguerite, purchased certain property in Middle-town Township, Monmouth County, New Jersey, which they used as a residence and farm.

In 1952 the New Jersey Highway Authority…