Pointer v. Commissioner
United States Tax Court
Robert W. Pointer, who was the owner of a manufacturing and construction business, expended $ 24,000 in developing and subdividing 10.63 acres of land, which petitioners had held for over 5 years and which was located adjacent to their personal residence. During 1961, 1962, and 1963 they sold a total of 10 lots to two builders upon which were constructed "good class" houses. Robert approved each set of construction plans and financed the construction.
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Robert W. Pointer, who was the owner of a manufacturing and construction business, expended $ 24,000 in developing and subdividing 10.63 acres of land, which petitioners had held for over 5 years and which was located adjacent to their personal residence. During 1961, 1962, and 1963 they sold a total of 10 lots to two builders upon which were constructed "good class" houses. Robert approved each set of construction plans and financed the construction. Title to the land was retained by petitioners until a lot and house were sold to a purchaser as a package. Petitioners did not directly…
1Opinion of the Court
Dawson, Judge:
Respondent determined income tax deficiencies against petitioners for the years 1961, 1962, and 1963 in the amounts of $1,271.53, $2,957.67, and $2,409.36, respectively.
The issues for decision are (1) whether the petitioners’ developmental activities on real estate owned by them constituted “substantial improvement that substantially enhanced” the value of the property so as to foreclose special capital gains treatment under section 1237, I.R.C. 1954,2 and (2) whether the real estate was held by the petitioners “primarily for sale to customers in the ordinary course of their…
2Cases cited15 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Malat v. RiddellSupreme Court of the United States · 1966
- Walter H. Kaltreider and Irene C. Kaltreider v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Farley v. CommissionerUnited States Tax Court · 1946
- Fahs v. CrawfordCourt of Appeals for the Fifth Circuit · 1947
10 more not listed; retrieve them via the Exa API.
3Cited by37 opinions
- Howell v. CommissionerUnited States Tax Court · 1972
- Daugherty v. CommissionerUnited States Tax Court · 1982
- Robert W. Pointer and Maybelle Pointer v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1969
- S & H, Inc. v. CommissionerUnited States Tax Court · 1982
- Adam v. CommissionerUnited States Tax Court · 1973
32 more not listed; retrieve them via the Exa API.