Dunigan v. Commissioner
United States Board of Tax Appeals
1. Taxpayer, who was in the business of building and selling houses, in 1919 purchased a tract of land for use in his business and in 1922 and 1923 built houses thereon and sold them for a profit.
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1. Taxpayer, who was in the business of building and selling houses, in 1919 purchased a tract of land for use in his business and in 1922 and 1923 built houses thereon and sold them for a profit. Held, inasmuch as the land was held for more than two years and was a capital asset within the meaning of section 206 of the Revenue Act of 1921, the taxpayer may elect to have the portion of the profit from the sale which is allocable to the land taxed to him as a capital gain. 2. Since the houses were erected less than two years prior to their sale they were not held by the taxpayer for more than…
1Opinion of the Court
*420OPINION.
Black :
The governing statute here is section 206 of the Revenue Act of 1921 which reads in part:(a) That for the purpose of this title:(1) The term “ capital gain ” means taxable gain from the sale or exchange of capital assets consummated after December 31, 1921;
* * * * ⅞ ⅞ ⅞(6) The term “capital assets” as used in this section means property acquired and held by the taxpayer for profit or investment for more than two years (whether or not connected with his trade or business), but does not include property held for the personal use or consumption of the taxpayer or his family, or…
2Cited by5 opinions
- Weaver v. CommissionerUnited States Tax Court · 1959
- Smith v. CommissionerUnited States Tax Court · 1972
- Dunigan v. CommissionerUnited States Board of Tax Appeals · 1931
- Smith v. CommissionerUnited States Tax Court · 1972
- Weaver v. CommissionerUnited States Tax Court · 1959