Jewell v. Commissioner
United States Tax Court
A breeder and seller of standard-bred trotting racehorses was attempting to build up the quality of his breeding herd. He changed from selling most of the colts foaled as weanlings to holding all of the colts until they were yearlings. Only a small percentage of colts possessed the qualities desired in a member of the breeding herd, and the rest were sold as yearlings. Eleven horses involved were sold as yearlings during the taxable years.
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A breeder and seller of standard-bred trotting racehorses was attempting to build up the quality of his breeding herd. He changed from selling most of the colts foaled as weanlings to holding all of the colts until they were yearlings. Only a small percentage of colts possessed the qualities desired in a member of the breeding herd, and the rest were sold as yearlings. Eleven horses involved were sold as yearlings during the taxable years. None of the 11 had been used for breeding or racing, and in the case of 3 of the horses the taxpayer owned only a partial interest. Held, 3 of the 11…
1Opinion of the Court
OPINION.
Bruce, Judge:
The question presented is whether horses foaled on Jewell’s farm and sold as yearlings during the taxable years involved were held for breeding purposes and were, therefore, “property used in the trade or business” within the purview of section 117 (j) (1), Internal Revenue Code of 1939.1 As all of the horses involved were held more than 6 months, if they were held primarily for breeding purposes as petitioners contend, the gain on their sale is taxable as long-term capital gain.2 However, if they were held primarily for sale as respondent contends, the gain is taxable as…
2Cases cited9 opinions
- McDonald v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1954
- Bradford v. CommissionerUnited States Tax Court · 1954
- Fox v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1952
- Fox v. CommissionerUnited States Tax Court · 1951
- McDonald v. CommissionerUnited States Tax Court · 1955
4 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Gamble v. CommissionerUnited States Tax Court · 1977
- Kirk v. CommissionerUnited States Tax Court · 1966
- Fowler v. CommissionerUnited States Tax Court · 1962
- Egly v. CommissionerUnited States Tax Court · 1988
- Fowler v. CommissionerUnited States Tax Court · 1962
4 more not listed; retrieve them via the Exa API.