Mackay v. Commissioner
United States Board of Tax Appeals
1. Petitioner sold building lots under contracts by which he agreed to grade the street and lay a sidewalk in front of each lot. Held, on the particular facts disclosed, that the expense actually incurred in the grading of streets and laying of sidewalks should be included in the basis for determining gain resulting from sale of such lots. 2. Penalty for negligence allowed. 3. Penalty for fraud disallowed.
1Opinion of the Court
*571OPINION.
Lansdon:
During the taxable years the petitioner sold 1,772 lots. Each lot was sold on representation to the purchasers that a cement sidewalk would be constructed in front thereof at the cost of the *572vendor and the contract of sale in every instance included the provision as to such construction, which we have quoted above. Within the years involved cement sidewalks Avere laid on 305 lots, at an average cost of $38.34, or a total of $11,693.70. At this rate it Avould have cost $67,938.48 to lay sideAvalks on all the lots so sold in such years. At the date of hearing there had been no…
2Cited by12 opinions
- Herzog Bldg. Corp. v. CommissionerUnited States Tax Court · 1965
- Fairfield Plaza, Inc. v. CommissionerUnited States Tax Court · 1963
- Memphis Memorial Park v. CommissionerUnited States Board of Tax Appeals · 1933
- Meadowlawn Memorial Gardens, Inc. v. United StatesUnited States Court of Claims · 1980
- Brown v. CommissionerUnited States Tax Court · 1992
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