McBride v. Commissioner
United States Tax Court
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
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- Biddle v. CommissionerSupreme Court of the United States · 1938
- Chisholm v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1935
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- Keystone Automobile Club v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1950
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- Maple v. CommissionerUnited States Tax Court · 1968
- Harding v. CommissionerUnited States Tax Court · 1970
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