# Parkside, Inc. And Beaconcrest, Inc. v. Commissioner of Internal Revenue

> Court of Appeals for the Ninth Circuit · December 2, 1977 · 571 F.2d 1092

URL: https://www.frixlaw.com/law-library/cases/9464581

## Case

- **Full name:** PARKSIDE, INC. and Beaconcrest, Inc., Petitioners-Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee
- **Court:** Court of Appeals for the Ninth Circuit
- **Decided:** December 2, 1977
- **Citations:** 571 F.2d 1092; 41 A.F.T.R.2d (RIA) 451; 1977 U.S. App. LEXIS 5785
- **Precedential status:** Published
- **Opinion:** Concurrence by Pregerson
- **Judges:** Choy, Kennedy, Pregerson
- **Cited by:** 20 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/9464581

## Opinion text

PREGERSON, District Judge,
concurring:
Whether taxpayers’ real property was “held primarily for sale to customers in the ordinary course of [taxpayers’] trade or business” within the meaning of 26 U.S.C. § 543 (b)(3) is a question of law, see Estate of Franklin v. Commissioner, 544 F.2d 1045, 1047, n. 3 (9th Cir. 1976), to which the “clearly erroneous” rule should be inapplicable. Winthrop v. Commissioner, 417 F.2d 905, 910 (5th Cir. 1969).
While referring to the “clearly erroneous” standard, Ninth Circuit cases such as Austin v. Commissioner, 263 F.2d 460 (1959), still carefully analyze the facts in light of the applicable law. This careful analysis, in effect, amounts to a de novo review of the Tax Court’s legal conclusion.
I vote to reverse because an analysis of the facts of this case in light of the applicable law reveals that the Tax Court reached an incorrect legal conclusion.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/9464581. Public record. Not legal advice.