John D. Byram and Sally A. Byram v. Commissioner of Internal Revenue

COLEMAN, Circuit Judge:

Appellants-taxpayers appeal the Tax Court’s determination that they improperly allocated the entire cost basis of a tract of land to a portion of the tract which they sold. We affirm.

The facts are stipulated. On February 3, 1967, appellant obtained an option to purchase 3.808 acres in an industrial park in Houston, Texas. On February 16, appellant and National Cash Register (NCR) entered into an agreement under which NCR agreed to lease the building which appellant contemplated erecting on that site. The following day, appellant executed a contract to purchase the land…