Wilkes v. Commissioner
United States Tax Court
Held: 1. Petitioner, in the taxable year 1945, did not sustain a loss deductible under section 23 (e) of the Internal Revenue Code, on the sale of real estate devoted solely to his use as a personal residence for 16 years, although he originally purchased the property with the predominant purpose of realizing a profit on its sale. 2. Assuming a conversion from residential to rental property took place in April 1944, petitioner has not established the fair market value of the…
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Held: 1. Petitioner, in the taxable year 1945, did not sustain a loss deductible under section 23 (e) of the Internal Revenue Code, on the sale of real estate devoted solely to his use as a personal residence for 16 years, although he originally purchased the property with the predominant purpose of realizing a profit on its sale. 2. Assuming a conversion from residential to rental property took place in April 1944, petitioner has not established the fair market value of the property at the time of the alleged conversion, which is a prerequisite to a determination of the amount of loss, if…
1Opinion of the Court
OPINION.
Leech, Judge:
Petitioner contends that on the sale of real property known as “Jacksonwald,” in the taxable year 1945, he sustained a loss which is deductible under section 23 (e) (1) or (2) of the Internal Revenue Code.1 Petitioner’s position is that this real property was purchased by him in 1928 with the predominant purpose of later selling it at a profit, and that the loss sustained on its subsequent sale was incurred in a transaction entered into for profit within the purview of subdivision (2) of section 23 (e) of the Code. Sidney W. Sinsheimer, 7 B. T. A. 1099; Henry J. Gordon,…
2Cases cited4 opinions
- Heiner v. TindleSupreme Court of the United States · 1928
- Rumsey v. CommissionerCourt of Appeals for the Second Circuit · 1936
- Morgan v. COMMISSIONER OF INTERNAL REVENUECourt of Appeals for the Fifth Circuit · 1935
- Gevirtz v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1941
3Cited by19 opinions
- Austin v. CommissionerUnited States Tax Court · 1960
- Neave v. CommissionerUnited States Tax Court · 1952
- Meredith v. CommissionerUnited States Tax Court · 1975
- McBride v. Commissioner (A)United States Tax Court · 1968
- Meyer v. CommissionerUnited States Tax Court · 1960
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