Court Opinion

ID: 9653472
Source: CourtListenerOpinion
Date Created: 2023-08-23 17:47:17.59528+00
Date Added: 2024-06-11T18:12:59.469054
License: Public Domain

LEE, Circuit Judge
(concurring).
Commander was a real estate broker and developer, as stated in the majority opinion. Under his contract with the taxpayer, Commander developed and sold, and interested other building contractors in developing and selling, homes in the subdivision financed by FHA-insured mortgages. The taxpayer was paid only the appraised value of the lots ’on which dwellings and outhouses were located. The business consisted of improving property in the subdivision, then selling-the improved property under the FHA plan. Commander and the other building contractors were in that business, not the taxpayer. Commander under his contract had the control of the lots: he could take over one or all of the lots, separately or collectively. He and the contractors profited or lost by the activities. Beyond the appraised value of the naked lot forming part of the home-site sold, the taxpayer was without interest. Under these circumstances, the property held by the taxpayer was not primarily for sale to customers in the ordinary course of his trade or business.