Tamarisk Country Club v. Commissioner
United States Tax Court
P, a tax-exempt social club under sec. 501(c)(7), I.R.C. 1954, purchased land in 1972 to expand its recreational facilities. P sold the land and realized gain in 1974. Within the 4-year period commencing 1 year before the sale and ending 3 years after the sale, P purchased other property for an amount less than the consideration it received on the land sale less selling expenses. Held: P's realized 1974 gain is recognized.
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P, a tax-exempt social club under sec. 501(c)(7), I.R.C. 1954, purchased land in 1972 to expand its recreational facilities. P sold the land and realized gain in 1974. Within the 4-year period commencing 1 year before the sale and ending 3 years after the sale, P purchased other property for an amount less than the consideration it received on the land sale less selling expenses. Held: P's realized 1974 gain is recognized. The nonrecognition provisions of sec. 512(a)(3)(D), I.R.C. 1954, do not apply. Sec. 512(a)(3)(D), I.R.C. 1954, requires that gain realized on the sale of property used…
1Opinion of the Court
OPINION
Gerber, Judge:*
Respondent, in a November 4, 1982, statutory notice, determined a deficiency of $44,592 in petitioner Tamarisk Country Club’s Federal income tax liability for its taxable year ended September 30, 1974. We must decide the extent to which the gain realized by petitioner, a tax exempt social club, on the sale of property used directly in the performance of its exempt function must be recognized pursuant to section 512(a)(3)(D).1
The parties have stipulated to the facts in this case. Their stipulation of facts and accompanying joint exhibits are incorporated by this reference.
2Cases cited11 opinions
- United States v. TurketteSupreme Court of the United States · 1981
- Consumer Product Safety Commission v. GTE Sylvania, Inc.Supreme Court of the United States · 1980
- Crane v. CommissionerSupreme Court of the United States · 1947
- Rosewell v. LaSalle National BankSupreme Court of the United States · 1981
- Malat v. RiddellSupreme Court of the United States · 1966
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3Cited by17 opinions
- Laglia v. CommissionerUnited States Tax Court · 1987
- Ordlock v. Comm'rUnited States Tax Court · 2006
- Mearkle v. CommissionerUnited States Tax Court · 1986
- Warbelow's Air Ventures v. Comm'rUnited States Tax Court · 2002
- Petersen v. Comm'rUnited States Tax Court · 2017
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