Calvelli v. Commissioner
United States Board of Tax Appeals
1. Lots in a tract purchased by a building contractor for the purpose of subdivision and sale and to promote the building business, held, property held primarily for sale to customers in the ordinary course of the taxpayer's trade or business, and the tax upon the profits from the sale is not limited by the percentage applicable to capital assets. 2. A dwelling house used by the builder for display as a sample of his building and as an office, and occupied by him as a…
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1. Lots in a tract purchased by a building contractor for the purpose of subdivision and sale and to promote the building business, held, property held primarily for sale to customers in the ordinary course of the taxpayer's trade or business, and the tax upon the profits from the sale is not limited by the percentage applicable to capital assets. 2. A dwelling house used by the builder for display as a sample of his building and as an office, and occupied by him as a residence, held, in the absence of evidence of the proportionate extent of the business use, not a proper subject of a…
1Opinion of the Court
*8OPINION.
SteRnhagen :
1. The first contention made by the petitioner is that the Commissioner erred in his determination that the gains derived from the sale of the lots in the subdivided tract were ordinary gains and not capital gains, Revenue Act of 1936, section 117 (b), the amount of which is taxable to the extent of 60 percent, section 117 (a). The evidence establishes that the petitioner bought this property for the purpose of subdividing it into lots and selling the lots and the finding has been made in the language of the statute. There is, in our opinion, no escape from the finding. It…
2Cited by11 opinions
- Coe Laboratories, Inc. v. CommissionerUnited States Tax Court · 1960
- Kent v. CommissionerUnited States Tax Court · 1953
- Nolla v. Secretario de HaciendaSupreme Court of Puerto Rico · 1954
- Calvelli v. CommissionerUnited States Board of Tax Appeals · 1940
- Coe Laboratories, Inc. v. CommissionerUnited States Tax Court · 1960
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