Legal Opinion

Dressen v. Commissioner

United States Tax Court

Decided March 6, 1952No. Docket No. 32348PublishedCited by 19 opinions

Gain from Sales of Lots -- Capital Gain. -- The petitioner purchased country lots in 1931 as an investment. He held the lots for 15 years. Some of the lots were sold in 1946 and 1947. Held, under the facts, that the lots were not held primarily for sale to customers in the ordinary course of petitioner's business within section 117 (a) (1), I. R. C., and that gain realized from sales in 1947 is taxable as long term capital gain.

1Opinion of the Court

OPINION.

HaRROn, Judge:

The question is whether the profit which the petitioner realized from the sale of the Prior Lake lots and one lot in Shakopee is taxable as capital or ordinary gain.

The respondent has determined that the properties involved must be excluded from the class of capital assets, under section 117 (a) (1) of the Internal Revenue Code, because they were “held by the petitioner primarily for sale to customers in the ordinary course of his trade or' business.” He relies upon Richards v. Commissioner, 81 F. 2d 369; Welch v. Solomon, 99 F. 2d 41; Ehrman v. Commissioner, 120 F. 2d…

2Cases cited18 opinions

  1. Burnet v. HarmelSupreme Court of the United States · 1932
  2. Thrift v. CommissionerUnited States Tax Court · 1950
  3. Mauldin v. CommissionerUnited States Tax Court · 1951
  4. Farley v. CommissionerUnited States Tax Court · 1946
  5. Ehrman v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1941

13 more not listed; retrieve them via the Exa API.

3Cited by19 opinions

  1. Hoover v. CommissionerUnited States Tax Court · 1959
  2. Reithmeyer v. CommissionerUnited States Tax Court · 1956
  3. Moore v. CommissionerUnited States Tax Court · 1958
  4. Louisiana Western Lumber Co. v. CommissionerUnited States Tax Court · 1954
  5. Girard Trust Corn Exchange Bank v. CommissionerUnited States Tax Court · 1954

14 more not listed; retrieve them via the Exa API.

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