Smith v. Commissioner
United States Tax Court
Petitioners acquired improved realty of which they were the purchase-money mortgagees at the trustee's sale held after the buyers' default. Held: The holding period of the previously unimproved land in petitioners' hands may not be tacked to the holding period of the after-acquired apartment buildings erected on the land by the buyers.
Read the full summary
Petitioners acquired improved realty of which they were the purchase-money mortgagees at the trustee's sale held after the buyers' default. Held: The holding period of the previously unimproved land in petitioners' hands may not be tacked to the holding period of the after-acquired apartment buildings erected on the land by the buyers. Sec. 1.1038-1(g)(3), Income Tax Regs.Sec. 1223(1), I.R.C. 1954, is not called into play because there is no warrant for allocating to the buildings any of petitioners' adjusted basis for the installment obligation of the buyers.
1Opinion of the Court
Tietjens, Judge:
In these consolidated cases the Commissioner determined deficiencies in income tax as follow:
Docket No. Year Deficiency Petitioner
4603-70 Í 1966 1967 $1,637.66 1,424.98 Hugh H. Smith and Evelyn J. Smith..
4604-70 1964 1966 1966 1967 1,314.69 3,674.16 2,329.87 1,220.21 George W. Smith and Betty Smith_
All items of the deficiencies save one have been disposed of by settlement; the remaining issue concerns the holding period of certain realty sold by petitioners, specifically, whether the benefit of tacking holding periods is available so as to qualify the sales as long-term…
2Cases cited7 opinions
- Paul v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1953
- Draper v. CommissionerUnited States Tax Court · 1959
- Paul v. CommissionerUnited States Tax Court · 1952
- Cleveland-Sandusky Brewing Corp. v. CommissionerUnited States Tax Court · 1958
- Fairfield Plaza, Inc. v. CommissionerUnited States Tax Court · 1963
2 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Conners v. CommissionerUnited States Tax Court · 1987
- Conners v. CommissionerUnited States Tax Court · 1987
- Smith v. CommissionerUnited States Tax Court · 1972