Taxpayer Was Developer With Gains on Sale Taxed as Ordinary Income.

The petitioner was a self-described real estate real estate professional that received income from the sale of land.  The petitioner reported the income as capital gain, but the Tax Court held that it was ordinary income because the petitioner held the property primarily for sale to customers in the ordinary course of the petitioner's real estate business.  The court noted that the issue of whether the petitioner was a developer (ordinary income treatment) or an investor (capital gain treatment) was fact dependent, and that the facts supported developer status.  The petitioner held his business out to customers as a real estate business and engaged in development and frequent sales of numerous tracts over an extended period of time.  In prior years, the petitioner had reported the income from sales as ordinary income and had deducted the expenses associated with the tracts.  Boree v. Comr., T.C. Memo. 2014-85.