Ray v. Commissioner
United States Tax Court
Petitioner, owner of certain timberlands, entered into a contract with the Mengel Company in the taxable year 1952, which provided, inter alia, that he was to produce 40,000 cords of pulpwood from his tracts of land over an 8-year period. Petitioner was to cut the timber involved or have it cut. Only in the event of his default in cutting, removing, and shipping the pulpwood was Mengel to have the right to enter petitioner's land and perform the cutting operations.
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Petitioner, owner of certain timberlands, entered into a contract with the Mengel Company in the taxable year 1952, which provided, inter alia, that he was to produce 40,000 cords of pulpwood from his tracts of land over an 8-year period. Petitioner was to cut the timber involved or have it cut. Only in the event of his default in cutting, removing, and shipping the pulpwood was Mengel to have the right to enter petitioner's land and perform the cutting operations. Petitioner arranged for his two sons, who were partners doing business under the name of Ray Naval Stores, to cut the trees…
1Opinion of the Court
Fisher, Judge:
This proceeding involves a deficiency in income tax determined against petitioner for the taxable year 1952 in the amount of $15,564.46.
The principal issue presented is whether petitioner is entitled to treat, as long-term capital gain pursuant to sections 117 (Ir) (2) or 117 (j) of the Code of 1939,1 the amount of $40,000 which he received as an advance payment during the taxable year 1952 for timber to be cut from bis or other land and delivered to the purchaser.
FINDINGS OK PACT.
Some of the facts are stipulated and, as stipulated, are incorporated herein by this reference.
Joe…
2Cases cited14 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Burton-Sutton Oil Co. v. CommissionerSupreme Court of the United States · 1946
- Renwick v. United StatesCourt of Appeals for the Seventh Circuit · 1936
9 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Harold Barclay and Dorothy Barclay v. The United States. Philip Dahl and Dorothy Dahl v. The United StatesUnited States Court of Claims · 1964
- Barclay v. United StatesUnited States Court of Claims · 1964
- United States v. GiustinaCourt of Appeals for the Ninth Circuit · 1962
- Joe S. Ray v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1960
- International Paper Co. v. United StatesUnited States Court of Federal Claims · 1995
7 more not listed; retrieve them via the Exa API.