Kruse v. State Tax Commission

Edward H. Howell, Judge.

The question before the court in this ease is whether certain timber sold in 1960 was a capital asset as defined in ORS 316.408, thereby giving rise to a capital gain, or as the tax commission contends, property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business resulting in ordinary income.

During the time involved the material part of ORS 316.408 (repealed by Or L 1965, ch 410) stated:

“For the purpose of ORS 316.408 to 316.450, ‘capital asset’ means property held by the taxpayer (whether or not connected with Ms trade…