Brown v. Commissioner
United States Tax Court
T entered into two contracts to purchase separate undeveloped tracts of land. In each instance the contract of sale provided for conveyance of the property to a trustee. The trust agreement recited that it was the intention of the buyer to subdivide the property. The trustee undertook to advance funds for development of the property, and the sellers subordinated their liens for the unpaid purchase price to the trustee.
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T entered into two contracts to purchase separate undeveloped tracts of land. In each instance the contract of sale provided for conveyance of the property to a trustee. The trust agreement recited that it was the intention of the buyer to subdivide the property. The trustee undertook to advance funds for development of the property, and the sellers subordinated their liens for the unpaid purchase price to the trustee. Provision was made for delivery of deeds to T by the trustee of portions of the properties selected by T in proportion to payment of the purchase price and repayment of…
1Opinion of the Court
OPINION
Baum, Judge:
In 1963 petitioner realized an aggregate gain of $71,636.31 in respect of his 1959 assignments of his interests in the Emmons and Anderson properties to his controlled corporation, the Boyce Brown Development Co., and he challenges the Commissioner’s classification of such gain as ordinary income rather than capital gain. The issue is whether such interests are excluded from the term “capital assets” because they represented “property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business” within the meaning of section…
2Cases cited20 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
- Malat v. RiddellSupreme Court of the United States · 1966
- Whipple v. CommissionerSupreme Court of the United States · 1963
- Burnet v. ClarkSupreme Court of the United States · 1932
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3Cited by4 opinions
- Gamble v. CommissionerUnited States Tax Court · 1977
- Brown v. CommissionerUnited States Tax Court · 1970
- Gamble v. CommissionerUnited States Tax Court · 1977
- WRAY v. COMMISSIONERUnited States Tax Court · 1978