Davock v. Commissioner
United States Tax Court
Petitioner acquired two tracts of land, one of which he held for more than 6 months, the other of which he held less than 6 months. He purchased one of the tracts knowing he would be forced to sell at a loss, but that the purchase of that tract was necessary in order to make a profitable sale of the other much larger tract. Petitioner took a short-term capital loss on the latter acquired land.
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Petitioner acquired two tracts of land, one of which he held for more than 6 months, the other of which he held less than 6 months. He purchased one of the tracts knowing he would be forced to sell at a loss, but that the purchase of that tract was necessary in order to make a profitable sale of the other much larger tract. Petitioner took a short-term capital loss on the latter acquired land. Respondent contends that both parcels of land were sold as a unit, an unallocated sales price being received by petitioner therefor. Respondent contends that petitioner received an amount equal to his…
1Opinion of the Court
OPINION.
Withey, Judge:
Did petitioner sustain a short-term capital loss in 1945 in the amount of $7,615.56 by virtue of the sale of Parcel A during that year?
There is no dispute between the parties that petitioner paid $9,115.56 for Parcel A. The controversy arises over the amount received by him on sale of that parcel to the State of Michigan. Petitioner maintains he received but $1,500, the amount fixed by the state’s appraiser as the fair market value. Respondent insists that petitioner received $9,115.56 and, therefore, suffered no capital loss in the transaction. Respondent’s contention…
Also in this document: Dissent.
2Cases cited5 opinions
- C. D. Johnson Lumber Corp. v. CommissionerUnited States Tax Court · 1949
- Lakeside Irr. Co. v. Commissioner of Internal Rev.Court of Appeals for the Fifth Circuit · 1942
- Morris Investment Corp. v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1946
- Mahaffey v. HelveringCourt of Appeals for the Eighth Circuit · 1944
- Owen v. United StatesDistrict Court, D. Nebraska · 1951
3Cited by3 opinions
- American Smelting and Refining Company — Consolidated v. The United StatesUnited States Court of Claims · 1970
- Davock v. CommissionerUnited States Tax Court · 1953
- Rymer v. CommissionerUnited States Tax Court · 1986