Tesche v. Commissioner
United States Tax Court
Richard P. Tesche was engaged in the tree nursery business. His operation consisted of sales of shrubs and of cutting tree limbs, known as scion wood, grafting them to rootstock and selling them exclusively to other nurseries.
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Richard P. Tesche was engaged in the tree nursery business. His operation consisted of sales of shrubs and of cutting tree limbs, known as scion wood, grafting them to rootstock and selling them exclusively to other nurseries. The trees from which petitioner obtained scion wood had a productive life of up to 10 years and when no longer productive, they were either destroyed or sold. 1. On failure of proof, held that gains from sales of shrubs were taxable as ordinary income. 2. On the facts, held that petitioner's scion wood trees were held for use in his business and that gains from sales…
1Opinion of the Court
FoeRester, Judge:
[Respondent has determined deficiencies in the Federal income tax of tbe petitioners and additions thereto as follows:
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The issues for determination are: (1) Whether the petitioners realized ordinary income or capital gain during the taxable years involved from the sale of certain shrubs and scion wood trees held more than 6 months; (2) whether the petitioners are liable for the additions to tax for the taxable year 1954 under section 6651 of the Internal Revenue Code of 1954 and sections 294(d)(1)(A) and 294(d) (2) of the Internal Revenue Code of 1939.
EINDINGS OF…
2Cases cited5 opinions
- MAULDIN v. COMMISSIONER OF INTERNAL REVENUE (Two Cases)Court of Appeals for the Tenth Circuit · 1952
- Rollingwood Corp. v. Commissioner of Internal Revenue. Bohannon v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1951
- McDonald v. CommissionerUnited States Tax Court · 1955
- Greene-Haldeman v. CommissionerUnited States Tax Court · 1959
- Hancock v. CommissionerUnited States Tax Court · 1959
3Cited by5 opinions
- Guardian Indus. Corp. v. CommissionerUnited States Tax Court · 1991
- Kirk v. CommissionerUnited States Tax Court · 1966
- Guardian Indus. Corp. v. CommissionerUnited States Tax Court · 1991
- Kirk v. CommissionerUnited States Tax Court · 1966
- Tesche v. CommissionerUnited States Tax Court · 1959