McGah v. Commissioner
United States Tax Court
The petitioners, E. W. McGah and John P. O'Shea, were partners doing business under the name of San Leandro Homes Co. The business of San Leandro was the building of houses. The partnership was created for the purpose of building houses for defense workers, and building materials preference ratings were obtained in 1942 for construction of 169 houses.
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The petitioners, E. W. McGah and John P. O'Shea, were partners doing business under the name of San Leandro Homes Co. The business of San Leandro was the building of houses. The partnership was created for the purpose of building houses for defense workers, and building materials preference ratings were obtained in 1942 for construction of 169 houses. They were completed early in 1943. Under the preference rating granted by O. P. M., San Leandro agreed to make, and it was required to make, 69 houses available for a rental of $ 39.99, each. It was allowed to rent the remaining 100 houses for $…
1Opinion of the Court
OPINION.
Harron, Judge:
The question in this proceeding is whether the gain from the sales of 14 houses in 1944 by the partnership, San Leandro, is taxable as ordinary income or as capital gain. The respondent has determined that the 14 houses were held for sale to customers in the ordinary course of trade or business within the meaning of sections 117 (a) and (j) of the Internal Revenue Code and that, consequently, the gain from the sales of the 14 dwelling units during the taxable year is taxable as ordinary income. The petitioners contend, on the other hand, that the 14 houses were held…
2Cases cited1 opinion
- McFaddin v. CommissionerUnited States Tax Court · 1943
3Cited by18 opinions
- Winnick v. CommissionerUnited States Tax Court · 1951
- McGah v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1954
- McGah v. CommissionerUnited States Tax Court · 1952
- McGah v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1952
- Crabtree v. CommissionerUnited States Tax Court · 1953
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