Todd v. Commissioner
United States Tax Court
In 1964, petitioner Malcolm C. Todd purchased a parcel of land for the purpose of constructing an apartment building. From 1964 through 1975, he incurred expenses of $ 159,784 in preparing for such construction. Prior to this venture, Mr. Todd had never engaged in the business of developing real estate or operating rental properties.
Read the full summary
In 1964, petitioner Malcolm C. Todd purchased a parcel of land for the purpose of constructing an apartment building. From 1964 through 1975, he incurred expenses of $ 159,784 in preparing for such construction. Prior to this venture, Mr. Todd had never engaged in the business of developing real estate or operating rental properties. In 1975, prior to the commencement of any construction activity, Mr. Todd abandoned his plans for construction of the apartment building, thereby suffering an abandonment loss of $ 159,784. Held, the abandonment loss was not attributable to a trade or business…
1Opinion of the Court
Wiles, Judge:
Respondent determined a deficiency of $24,238 in petitioners’ 1972 income tax. The sole issue for decision is whether an abandonment loss incurred by petitioners in 1975 was attributable to a trade or business within the meaning of section 172(d)(4).1
FINDINGS OF FACT
All of the facts have been stipulated and are found accordingly.
Malcolm C. Todd (hereinafter petitioner) and Ruth S. Todd resided in Long Beach, Calif., when they filed their 1972 joint income tax return and when they filed their petition in this case.
From prior to 1950 through 1975, petitioner was a practicing…
2Cases cited11 opinions
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Richmond Television Corporation v. United StatesCourt of Appeals for the Fourth Circuit · 1965
- Richmond Television Corp. v. United StatesSupreme Court of the United States · 1965
- Madison Gas and Electric Company v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1980
- Madison Gas & Electric Co. v. CommissionerUnited States Tax Court · 1979
6 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Waddell v. CommissionerUnited States Tax Court · 1986
- Johnsen v. CommissionerUnited States Tax Court · 1984
- Erfurth v. CommissionerUnited States Tax Court · 1981
- Cleveland Electric Illuminating Co. v. United StatesUnited States Court of Claims · 1985
- Todd v. CommissionerCourt of Appeals for the Ninth Circuit · 1982
9 more not listed; retrieve them via the Exa API.