Reithmeyer v. Commissioner
United States Tax Court
Petitioners, who were engaged in the sand and gravel business, sold mined-out land for building sites. Petitioners platted a portion of the area and built and sold houses thereon and also sold vacant lots in the platted area. Petitioners also sold 1 acre of the area which contained no gravel, and other parcels outside the platted area.
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Petitioners, who were engaged in the sand and gravel business, sold mined-out land for building sites. Petitioners platted a portion of the area and built and sold houses thereon and also sold vacant lots in the platted area. Petitioners also sold 1 acre of the area which contained no gravel, and other parcels outside the platted area. Held, the sales of lots in the platted area were sales of property held by petitioners primarily for sales to customers in the ordinary course of their trade or business and the sales of other parcels outside the platted area were not. Sec. 117 (a) (1) and sec.…
1Opinion of the Court
OPINION.
Molkoney, Judge:
Petitioners’ first point, with regard to the land sales, is that the properties sold were not held by them primarily for sale to customers in the ordinary course of their trade or business, and therefore, under section 117 (a) (1) and section 117 (j) (1)-, Internal Revenue Code of 1939, the sales they made were entitled to capital gains treatment. Respondent determined the gain on the sale of realty in 1950 and 1951 to be ordinary income from property held primarily for sale to customers in the ordinary course of petitioners’ trade or business.
Whether or not real…
2Cases cited10 opinions
- Thrift v. CommissionerUnited States Tax Court · 1950
- 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
- Phillips v. Comissioner of Internal RevenueUnited States Tax Court · 1955
- Albright v. United StatesCourt of Appeals for the Eighth Circuit · 1949
- Boomhower v. United StatesDistrict Court, N.D. Iowa · 1947
5 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- American Can Co. v. CommissionerUnited States Tax Court · 1961
- Barrios v. CommissionerUnited States Tax Court · 1957
- CLuck v. CommissionerUnited States Tax Court · 1957
- Monday v. CommissionerUnited States Tax Court · 1957
- Lakin v. CommissionerUnited States Tax Court · 1957
14 more not listed; retrieve them via the Exa API.