Gordy v. Commissioner
United States Tax Court
Petitioner held an option to purchase a tract of land. In 1952 he sold the option to a corporation engaged in the development and sale of residential property, in which he was the majority shareholder. In 1955 he purchased a half interest in another tract of land and 1 month later entered into an agreement to sell it to a similar corporation in which he was the majority shareholder.
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Petitioner held an option to purchase a tract of land. In 1952 he sold the option to a corporation engaged in the development and sale of residential property, in which he was the majority shareholder. In 1955 he purchased a half interest in another tract of land and 1 month later entered into an agreement to sell it to a similar corporation in which he was the majority shareholder. Held, on the facts of the case petitioner was not in the real estate business and his gain from the sale of the option and his half interest in the tract of land is taxable as capital gain.
1Opinion of the Court
Ralph E. Gordy and Katherine F. Gordy, Petitioners, v. Commissioner of Internal Revenue, Respondent
Gordy v. Commissioner
Docket No. 82044
United States Tax Court
36 T.C. 855; 1961 U.S. Tax Ct. LEXIS 96;
August 17, 1961, Filed
Decision will be entered under Rule 50.
Petitioner held an option to purchase a tract of land. In 1952 he sold the option to a corporation engaged in the development and sale of residential property, in which he was the majority shareholder. In 1955 he purchased a half interest in another tract of land and 1 month later entered into an agreement to sell it to a similar…
2Cases cited5 opinions
- Burnet v. ClarkSupreme Court of the United States · 1932
- Gordy v. CommissionerUnited States Tax Court · 1961
- Estate of Mundy v. CommissionerUnited States Tax Court · 1961
- Glasgow Village Development Corp. v. CommissionerUnited States Tax Court · 1961
- Jarvis v. CommissionerUnited States Tax Court · 1959