holding that, when a taxpayer receives a condemnation notice, his intent in holding the condemned property automatically changes and that his intent in holding the property prior to the receipt of the notice is determinative for purposes of tax characterization of the property
How later courts described this case
- holding that, when a taxpayer receives a condemnation notice, his intent in holding the condemned property automatically changes and that his intent in holding the property prior to the receipt of the notice is determinative for purposes of tax characterization of the property
- an important way of determining the taxpayer's intent in holding the property is how the property was handled on the taxpayer's books and records
Written by the judges who cited it.
The opinion
Fay, J., concurring: I agree with Judge Goffe that the instant case does not reach the question of the characterization of proceeds of an after-notice sale to a party other than the condemner. Additionally, I believe the opening extends to a myriad of unforeseeable events which might occur after condemnation notice, such as the discovery of oil or rich hard mineral deposits. It is quite possible that, irrespective of condemnation notice, a taxpayer’s intended use of property may change.
Goffe, J, agrees with this concurring opinion. Goffe, J, concurring: I fully agree with the holding of the majority and with what the majority opinion says. I feel it should be pointed out, however, what, in my view, the opinion of the majority does not say and does not hold. We make no holding nor implication as to the effect, if any, upon the purpose for which property is held if a threat of condemnation is made and the owner of the property sells the property to a third party before receiving the proceeds of the condemnation.
Fay, J, agrees with this concurring opinion.