McGah v. Commissioner of Internal Revenue

MATHEWS, Circuit Judge.

Petitioners, Lucille McGah, E. W. Mc-Gah, Carole O’Shea and John P. O’Shea, partners calling themselves San Leandro Homes Company, were at all pertinent times engaged in the trade or business of renting and selling houses in (San Leandro, California. In August, (September and October, 1944, they sold, and derived gains from the sale of, 14 houses, all of which had been used in their trade or business 1 and held by them for more than 6 months. For income tax purposes, they treated the gains so derived as gains from sales of capital assets held for more than 6 months,…