Austin Clapp, Gloria Clapp, Stuart P. Clapp, and Virginia M. Clapp v. Commissioner of Internal Revenue

HAMLEY, Circuit Judge.

This matter is before us on a petition to review a decision of the Tax Court redetermining petitioners’ asserted federal income tax deficiency for the year 1955. The Tax Court decision is reported in 36 T.C. 905.

Petitioners operated a recreation park with facilities for swimming, boating and picnicking. 1 Members of the public were permitted to utilize these facilities upon the payment of a fee for admission to the park.

Included within the boundaries of the park was a lakeshore. In its natural state, the lakeshore did not contain any sand. In order to make an attractive…