M. C. Puckett and Thelma Puckett, Gerald C. Puckett and Eva Jane Puckett v. Commissioner of Internal Revenue

355 F.2d 551, 17 A.F.T.R.2d (RIA) 171

• Court: Court of Appeals for the Fifth Circuit
• Decided: January 18, 1966
• Docket: 21866
• Status: Published

Opinion

PER CURIAM:

. The question presented in this case is whether the Tax Court erred in concluding that $12,000.00 which the taxpayers were paid in the year 1954 for certain underground water rights is taxable, as ordinary income rather than as a capital gain. The memorandum findings of fact and opinion of the Tax Court are not officially reported but may be found in 23 CCH Tax Ct. Mem. 238 (1964); 33 P-H Tax Ct. Mem. 261 (1964).

The taxpayers urgently insist that the transaction constituted a “Water Rights Grant” and the funds received were proceeds of a sale and should be treated as capital gain. The Tax Court held the $12,000.00 was not received upon the “sale” of property and that taxpayers could not treat the gain as a long-term capital gain.

A careful examination of the record and the findings and opinion of the Tax Court convinces us that the correct conclusion was reached.

The judgment is affirmed.