Longfellow v. Commissioner
United States Tax Court
Capital Gains v. Ordinary Income -- Subdivision of Land -- Sale to Customers in Ordinary Course of Petitioner's Trade or Business. -- The petitioner sold lots over a period of years in a subdivision created from his rough land which was located in a residential zone. The land was graded by the petitioner's grading company, subdivided, and otherwise improved by the petitioner at an expense of many times the cost of the land.
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Capital Gains v. Ordinary Income -- Subdivision of Land -- Sale to Customers in Ordinary Course of Petitioner's Trade or Business. -- The petitioner sold lots over a period of years in a subdivision created from his rough land which was located in a residential zone. The land was graded by the petitioner's grading company, subdivided, and otherwise improved by the petitioner at an expense of many times the cost of the land. The lots were sold to customers in the ordinary course of the petitioner's trade or business and the gain is taxable as ordinary income.
1DissentPierce, J.
I, who was the trial Judge in this case and am the only member of the Court who has seen and heard the witnesses, respectfully dissent from the foregoing report. I would have decided the issue in favor of the petitioners. I entirely disagree with the summary conclusions set forth in the final paragraph of said report, which read:
No decided case duplicates the facts of this one. No advantage would be gained by comparing the facts in this with those in other decided cases, regardless of the results reached in those cases. * * *
I think the present case is not unique, either as to its facts or as…
2Cases cited13 opinions
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Arthur W. Smith and Mrs. Arthur W. Smith v. Charles H. Dunn, Formerly Acting Collector of Internal RevenueCourt of Appeals for the Fifth Circuit · 1955
- Fahs v. CrawfordCourt of Appeals for the Fifth Circuit · 1947
- Julian E. Ross and Gertrude A. Ross v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1955
- Chandler v. United StatesCourt of Appeals for the Seventh Circuit · 1955
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