Mauldin v. Commissioner
United States Tax Court
In 1920, petitioner purchased 160 acres of land approximately one mile from the business center of Clovis, New Mexico, and approximately one-half mile from the city limits. His immediate plans were to use the land for grazing and feeding cattle. These plans failed to materialize and in 1924 he platted the land for sale in lots and small acreage tracts.
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In 1920, petitioner purchased 160 acres of land approximately one mile from the business center of Clovis, New Mexico, and approximately one-half mile from the city limits. His immediate plans were to use the land for grazing and feeding cattle. These plans failed to materialize and in 1924 he platted the land for sale in lots and small acreage tracts. Part of the land was incorporated into the city about 1930, and all of it had been so incorporated by 1939. Although he engaged in other business activities over the years and the number of sales were up and down in various years, petitioner…
1Opinion of the Court
OPINION.
TtoneR, Judge:
The question is whether the lots sold by petitioner in 1944 and 1945 were held by him primarily for sale to customers in the ordinary course of his trade or business, within the meaning of section 117 (a) of the Internal Eevenue Code. If so, the gain realized was ordinary income, as the respondent has determined. If not, it was long term capital gain, as reported by petitioner.
That the lots were held primarily for sale to customers, is, we think, evident from the facts. From the time his plans for feeding and grazing cattle failed to materialize, the only plan petitioner…
2Cases cited2 opinions
- Farley v. CommissionerUnited States Tax Court · 1946
- Snyder v. CommissionerSupreme Court of the United States · 1935
3Cited by100 opinions
- Bauschard v. CommissionerUnited States Tax Court · 1959
- Estate of Finder v. CommissionerUnited States Tax Court · 1961
- Anderson v. CommissionerUnited States Tax Court · 1956
- Philbin v. CommissionerUnited States Tax Court · 1956
- Wood v. CommissionerUnited States Tax Court · 1955
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