Nature of the Case
To access this section all you need to do is click here and register.
Facts
Malat (P) participated in a joint venture and acquired a 45-acre parcel of land. The venture intended to develop and operate an apartment project on the land. There were difficulties encountered such as finding adequate financing. This resulted in a change of plans, and the interior lots were subdivided and sold. The profit from those sales were reported and taxed as ordinary income. The joint venture continued to look for alternatives to the original plans. Additional zoning frustrations were encountered, and eventually, P and the others involved decided it was time to give up. They then sold their remaining interests in the land. P reported the income from that sale as a capital gain and the IRS was not impressed; they ruled it ordinary income. Every court along the way agreed with the IRS. The Supreme Court granted certiorari.
Support@ bsmsphd.com
Casebriefs Co