Baker v. Commissioner
United States Tax Court
On April 30, 1955, petitioners, as lessees, acquired a lease to approximately 872 acres of farmland for a term of 10 years commencing January 1, 1957, at a cash rental of $ 7,000 per year.
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On April 30, 1955, petitioners, as lessees, acquired a lease to approximately 872 acres of farmland for a term of 10 years commencing January 1, 1957, at a cash rental of $ 7,000 per year. During the taxable year 1956 petitioners transferred this lease to a family-owned corporation for the sum of $ 30,000 which was paid by the corporation to petitioners on December 31, 1956. Held, the gain of $ 30,000 realized by petitioners is taxable to them as ordinary income by operation of section 1239, I.R.C. 1954, rather than as long-term capital gain as reported by petitioners in their income tax…
1Opinion of the Court
Tom F. Baker III and Billie Baker, Petitioners, v. Commissioner of Internal Revenue, Respondent
Baker v. Commissioner
Docket No. 87395
United States Tax Court
38 T.C. 9; 1962 U.S. Tax Ct. LEXIS 161;
April 4, 1962, Filed
Decision will be entered under Rule 50.
On April 30, 1955, petitioners, as lessees, acquired a lease to approximately 872 acres of farmland for a term of 10 years commencing January 1, 1957, at a cash rental of $ 7,000 per year. During the taxable year 1956 petitioners transferred this lease to a family-owned corporation for the sum of $ 30,000 which was paid by the corporation to…
2Cases cited10 opinions
- Helvering v. Stockholms Enskilda BankSupreme Court of the United States · 1934
- Fackler v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1943
- Century Electric Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1951
- Fackler v. CommissionerUnited States Board of Tax Appeals · 1941
- Atterbury v. CommissionerUnited States Board of Tax Appeals · 1924
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