Legal Opinion

McBride v. Commissioner

United States Tax Court

Decided February 21, 1955No. Docket Nos. 47338, 47339PublishedCited by 15 opinions

On October 31, 1944, H. L. McBride conveyed a 1,050.69-acre tract of land to McBride Refining Company, Inc., in which he owned a bare majority of stock, taking a note for the sales price. The company intended to develop the tract into citrus orchards, then sell those orchards at a profit.

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On October 31, 1944, H. L. McBride conveyed a 1,050.69-acre tract of land to McBride Refining Company, Inc., in which he owned a bare majority of stock, taking a note for the sales price. The company intended to develop the tract into citrus orchards, then sell those orchards at a profit. It expended $ 40,689.84 in 1944 for clearing that land and planting citrus trees on 200 acres thereof; $ 17,214.84 of that sum was spent in clearing 800.69 acres on which no trees were planted. On September 30, 1945, it reconveyed the 800.69 acres to H. L. McBride in accordance with a prior understanding…

1Opinion of the Court

OPINION.

Black, Judge:

Bespondent disallowed $40,689.84 of a deduction for orchard development expense claimed by the McBride Befining Company, Inc., for 1944. The $40,689.84 consisted of (a) $17,214.84 expended to clear an 800.69-acre section of a 1,050.69-acre tract of land, and (b) $23,475 expended to clear the remaining 250-acre section of the tract and plant citrus trees on 200 acres thereof.

Eespondent first contends that the 800.69-acre section was beneficially owned as community property by H. L. McBride and his then wife and, therefore, that the $17,214.84 expended in clearing it was…

2Cases cited9 opinions

  1. Manhattan General Equipment Co. v. Commissioner of Internal RevenueSupreme Court of the United States · 1936
  2. Biddle v. CommissionerSupreme Court of the United States · 1938
  3. Chisholm v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1935
  4. United States v. Bennett (Two Cases). Finch v. Arnold, Acting Collector of Internal Revenue (Two Cases). Birkbeck v. Thomas. Ritchie v. ThomasCourt of Appeals for the Fifth Circuit · 1951
  5. Keystone Automobile Club v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1950

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

3Cited by15 opinions

  1. Loftin And Woodard, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1978
  2. United States v. ClemonesCourt of Appeals for the Fifth Circuit · 1978
  3. United States v. Francis L. Higginson, TrusteesCourt of Appeals for the First Circuit · 1956
  4. Maple v. CommissionerUnited States Tax Court · 1968
  5. Harding v. CommissionerUnited States Tax Court · 1970

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

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