Pointer v. Commissioner

48 T.C. 906 (1967)

From our private database of 45,900+ case briefs, written and edited by humans—never with AI.

Pointer v. Commissioner

United States Tax Court
48 T.C. 906 (1967)

Facts

Robert and Maybelle Pointer (plaintiffs) owned a 10.63-acre tract of land that was held for over five years and located next to their residence. When 10 lots from the tract were sold, the concern became whether the resulting gain would be classified as ordinary income or capital-gains income. Robert owned a construction and manufacturing business during this period. If assets were held primarily for sale to customers in the ordinary course of business, the assets were excluded from the definition of capital assets, making the sale ordinary income. However, another special qualifier was present in 26 U.S.C. § 1237, which allowed some real estate transactions to qualify as capital assets. To qualify, Pointer had to establish that (1) the property had been held for at least five years, (2) Pointer had not held any part of the tract primarily for sale in the ordinary course of Pointer’s business nor had he held any other real property for that purpose in the year of sale, and (3) Pointer had not made any substantial improvements that substantially increased the value of the lots sold. The Commissioner of Internal Revenue (the commissioner) (defendant) disagreed with Pointer’s ability to qualify, particularly under the third component, as evidence indicated that utilities and a paved street had been added to the property at the expense of over $24,000 and that the overall value of the lots had essentially doubled over unimproved lots.

Rule of Law

Issue

Holding and Reasoning (Dawson, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 734,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 734,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 45,900 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 734,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 45,900 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership