Townend v. Commissioner
United States Tax Court
1. Petitioner and her brother and sister owned as partners certain inherited real property. Petitioner also owned real property individually. All of such properties were held primarily for rentals, but from time to time sales would be made. There were no purchases or acquisitions to replace items sold, and no general plan to liquidate either the partnership or the individual holdings.
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1. Petitioner and her brother and sister owned as partners certain inherited real property. Petitioner also owned real property individually. All of such properties were held primarily for rentals, but from time to time sales would be made. There were no purchases or acquisitions to replace items sold, and no general plan to liquidate either the partnership or the individual holdings. In 1945 and 1946 petitioner sold individually owned properties at a loss, while in 1946 the partnership sold properties at a profit. Held, the sale in 1945 was not attributable to the operation of a trade or…
1Opinion of the Court
OPINION.
Ratjm, Judge:
1. Petitioner claims a net operating loss carryover to 1946 because of a loss sustained in 1945 in the sale of certain real property. Respondent has disallowed such deduction on the authority of section 122(d) (5) of the Internal Revenue Code of 1939.1
In order for petitioner to prevail she must prove that the foregoing loss was attributable to .the operation of a trade or business regularly carried on by her. She contends, alternatively, that either she was in the business of selling real estate, or that the sale in 1945 was attributable to the operation of her trade or…
2Cases cited15 opinions
- Neuberger v. CommissionerSupreme Court of the United States · 1940
- Virginian Hotel Corporation v. Helvering, Commissioner of Internal RevenueSupreme Court of the United States · 1943
- Guggenheim v. HelveringCourt of Appeals for the Second Circuit · 1941
- Sic v. CommissionerUnited States Tax Court · 1948
- Lazier v. United StatesCourt of Appeals for the Eighth Circuit · 1948
10 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Durovic v. CommissionerUnited States Tax Court · 1970
- Hall Chevrolet Co., Inc. v. Dept. of RevenueWisconsin Supreme Court · 1978
- Palda v. CommissionerUnited States Tax Court · 1956
- Durovic v. CommissionerUnited States Tax Court · 1970
- Palda v. CommissionerUnited States Tax Court · 1956
3 more not listed; retrieve them via the Exa API.