Court Opinion

ID: 9450407
Source: CourtListenerOpinion
Date Created: 2023-08-04 16:46:11.095848+00
Date Added: 2024-06-11T17:32:18.074689
License: Public Domain

DAVIS, Judge
(concurring in the result) :
The Trial Commissioner has found that, when plaintiff purchased the land in 1949, he intended to farm it. Under the standards we employ to review factual findings of this type by our Commissioners (Wilson v. United States, 151 Ct. Cl. 271, 273 (1960); Davis v. United-States, Ct.Cl., No. 179-59, decided Feb. 14, 1964, slip op., pp. 4-5; Commerce International Co. v. United States, Ct.Cl., 338 F.2d 81 at pp. 86, 87, decided Oct.. 16, 1964; Litchfield Mfg. Corp. v. United States, Ct.Cl., 338 F.2d 94, at p. 98, n. 13, decided Oct. 16, 1964) I would not overturn this express finding.* However, it is. clear to me from the record, including among other things plaintiff’s own statements, that by the time of the transactions reflected in the income of the taxable years (1956-1958), he held the property primarily for sale to customers in the ordinary course of a real estate business. He was no longer engaged in farm*665ing, and to a substantial extent he was actively involved in the sale of the lots which was his primary occupation. He was not merely an investor passively accepting the proceeds of his capital.

 As 1 read the testimony of Hutchison, on which the court relies so heavily, it is not at all clear that the witness placed the conversation with tire plaintiff in 1949, the time when plaintiff first agreed to purchase the land, rather than 1951 (when the first payment was made and the first lots were conveyed to plaintiff) or in 1952. In addition, Hutchi-son’s testimony as to the conversation was unelaborated and lie admitted there was no discussion of subdividing or building, et cetera. Hutchison was the very last witness at the trial and plaintiff was the first. In these circumstances, the trial commissioner, who heard the testimony, could rightly decide that plaintiff was telling the truth when he said that he intended to farm the land when-, he bought it in 1949.