Estate of Oscar A. Nordquist, Deceased, Georgiana G. Nordquist, and Georgiana G. Nordquist v. Commissioner of Internal Revenue

HEANEY, Circuit Judge.

The taxpayer, Georgiana G. Nordquist, 1 appeals from an adverse decision of the Tax Court. 2 The sole issue is whether the gain realized by the taxpayer was a long-term capital gain or ordinary income.

The case was submitted to the Tax Court upon stipulated facts which are summarized below:

On February 12, 1964, Nordquist entered into a written agreement 3 with Oran D. Powell under which she wás to advance $12,000 to Powell to enable him to acquire fifty percent of the stock of Brookdale Motors, Inc., a corporation to be organized to operate a Ford dealership. The $12,000…