Legal Opinion

Armendaris Corp. v. Commissioner

United States Tax Court

Decided April 4, 1979No. Docket No. 7938-76Published

Held: 1. Under sec. 1251(c)(2), I.R.C. 1954, gain realized on the disposition of "farm recapture property" is treated as ordinary income to the extent of the amount in the taxpayer's excess deductions account (EDA) as computed under sec. 1251(b) at the close of the taxable year; 2. Under sec. 1251(b)(2)(A), a taxpayer's EDA is increased by its farm net loss for the year and under sec. 1251(b)(3)(A) is decreased by the amount of any farm net loss which does not result in a…

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Held: 1. Under sec. 1251(c)(2), I.R.C. 1954, gain realized on the disposition of "farm recapture property" is treated as ordinary income to the extent of the amount in the taxpayer's excess deductions account (EDA) as computed under sec. 1251(b) at the close of the taxable year; 2. Under sec. 1251(b)(2)(A), a taxpayer's EDA is increased by its farm net loss for the year and under sec. 1251(b)(3)(A) is decreased by the amount of any farm net loss which does not result in a reduction of tax; 3. Since petitioner computed its tax as a percentage of its capital gains on the alternative basis…

1Opinion of the Court

The Armendaris Corporation (Formerly Armendaris Land Development Corporation), Petitioner v. Commissioner of Internal Revenue, Respondent

Armendaris Corp. v. Commissioner

Docket No. 7938-76

United States Tax Court

72 T.C. 52; 1979 U.S. Tax Ct. LEXIS 144;

April 4, 1979, Filed

Decision will be entered under Rule 155.

Held:

1. Under sec. 1251(c)(2), I.R.C. 1954, gain realized on the disposition of "farm recapture property" is treated as ordinary income to the extent of the amount in the taxpayer's excess deductions account (EDA) as computed under sec. 1251(b) at the close of the taxable year;

2. Under…

2Cases cited9 opinions

  1. Taylor v. CommissionerUnited States Tax Court · 1977
  2. Robert B. Gotfredson and Charlotte B. Gotfredson v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1954
  3. Acro Mfg. Co. v. CommissionerUnited States Tax Court · 1962
  4. The Acro Manufacturing Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1964
  5. Estate of Kahn v. CommissionerCourt of Appeals for the Second Circuit · 1974

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