POUNDS v. UNITED STATES

No. 22730.

372 F.2d 342 (1967)

Christine L. POUNDS as Independent Executrix of the Estate of Horace E. Pounds and Christine L. Pounds, Appellants, v. UNITED STATES of America, Appellee.

United States Court of Appeals Fifth Circuit.

January 19, 1967.


Attorney(s) appearing for the Case

Dougal C. Pope, Houston, Tex., for appellants.

John B. Jones, Jr., Acting Asst. Atty. Gen., Meyer Rothwacks, Atty., Dept. of Justice, Washington, D. C., James R. Gough, Asst. U. S. Atty., Houston, Tex., David O. Walter, Donald W. Williamson, Lawrence B. Silver, Attys., Dept. of Justice, Washington, D. C., Morton L. Susman, U. S. Atty., Houston, Tex., Richard M. Roberts, Acting Asst. Atty. Gen., Lee A. Jackson, Atty., Dept. of Justice, Washington, D. C., Woodrow Seals, U. S. Atty., John H. Baumgarten, Asst. U. S. Atty., Houston, Tex., for appellee.

Before WISDOM, BELL and AINSWORTH, Circuit Judges.


WISDOM, Circuit Judge:

The Court is asked to decide whether the amount a real estate broker realized upon the division of profits from a sale of land should be treated as capital gain or as ordinary income where the broker-taxpayer's right to share in the profits was based on contract rights in part received for services rendered and in part purchased by the taxpayer.

The trial below was to the district court without a jury. Most of the facts are stipulated...

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