Guggenheim v. Commissioner
United States Tax Court
Petitioner was engaged in the business of breeding and racing thoroughbred horses. He formed a syndicate to share in the ownership of a valuable stallion held by him for breeding purposes. Ownership of the stallion was split into 35 indivisible parts by the syndication, each part being represented by a share. Petitioner retained 20 shares and sold 15 shares.
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Petitioner was engaged in the business of breeding and racing thoroughbred horses. He formed a syndicate to share in the ownership of a valuable stallion held by him for breeding purposes. Ownership of the stallion was split into 35 indivisible parts by the syndication, each part being represented by a share. Petitioner retained 20 shares and sold 15 shares. Held, the sale of such shares by petitioner was the sale of livestock held for breeding purposes and therefore the sale of property used in petitioner's trade or business within the meaning of section 1231, I.R.C. 1954.
1Opinion of the Court
Simpson, Judge:
Respondent determined deficiencies in income tax of $78,061.47 for the taxable year 1958 and $322,298.91 for the taxable year 1959. The only issue for decision is whether petitioner’s sale of shares in a syndicate relating to the stallion “*Turn-To”1 resulted in his receipt of ordinary income or whether such sale was a sale or exchange of property used in a trade or business as defined in section 1231 (b) of the Internal Revenue Code of 1954.2
FINDINGS OF FACT
Some of the facts were stipulated, and those facts are so found.
The petitioners are Harry F. Guggenheim and the Estate of…
2Cases cited13 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
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3Cited by12 opinions
- Kingsbury v. CommissionerUnited States Tax Court · 1976
- United States v. ResslerDistrict Court, S.D. Florida · 1977
- Foy v. CommissionerUnited States Tax Court · 1985
- Gladden v. Comm'rUnited States Tax Court · 1999
- Estate of Shea v. CommissionerUnited States Tax Court · 1971
7 more not listed; retrieve them via the Exa API.