L. O. Crosby, Jr., and Dorothy H. Crosby v. United States

SIMPSON, Circuit Judge:

The taxpayers entered into three identical sixty year Timber Purchase Agreements with St. Regis Paper Company in 1960. During the years 1961-1963, the taxpayers reported the income received from St. Regis pursuant to these agreements as capital gains. The Commissioner held that the income was ordinary and assessed additional taxes which the taxpayers paid. Following denial of a claim for refund, they brought a timely refund suit in the district court below. Sitting without a jury, the court found that the payments were ordinary income.1 We affirm.

Although the agreement…