Hallcraft Homes, Inc. v. Commissioner
United States Tax Court
Held: Lump-sum payment received by petitioner for the transfer of waterline refund agreements to the city of Phoenix was taxable as ordinary income rather than capital gain. Petitioner had previously deducted the amounts it advanced to the water companies under the agreements as cost of houses sold.
1Opinion of the Court
Deennen, Judge:
Respondent determined a deficiency in petitioner’s income tax for its fiscal year ending April 30, 1958, in the amount of $15,309.98. The only issue is whether the income realized by petitioner from the transfer of refundable water contracts to the city of Phoenix was taxable as ordinary income or as long-term capital gain from the sale or exchange of capital assets.
FINDINGS OF FACT
The stipulated facts are so found.
Petitioner is an Arizona corporation, incorporated in 1952 to succeed a partnership established by John C. Hall and his father, M. D. Hall, with its principal office…
2Cases cited17 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Albert Gersten, Myron P. Beck and Ann H. Beck, Milton Gersten and Mary Gersten v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1959
- Pelton Steel Casting Co. v. CommissionerUnited States Tax Court · 1957
- Nat Holt and Blanche Holt, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
12 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Bresler v. CommissionerUnited States Tax Court · 1975
- Hollywood Baseball Ass'n v. CommissionerUnited States Tax Court · 1964
- Herzog Bldg. Corp. v. CommissionerUnited States Tax Court · 1965
- Foxe v. CommissionerUnited States Tax Court · 1969
- Hallcraft Homes, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1964
10 more not listed; retrieve them via the Exa API.