King v. Commissioner of Internal Revenue

RUSSELL, Circuit Judge.

This petition for review of a decision of the Tax Court requires a determination of whether the income from sales of property should be treated as ordinary income or as arising from the sale or disposition of capital assets. The Tax Court determined, adversely to the contentions of the taxpayer, that at the time the sales in question were made the property sold was “held by taxpayer primarily for sale to customers in the ordinary course of his trade or business,” and consequently that the profit on the sales must be treated as ordinary income. The taxpayer contends that…