Smyth
Union Paving Co. v. Smyth
Opinion
lead Opinion
Murphy, J.
This is a taxpayer’s suit for refund of taxes paid in the calendar years 1942, 1943 and 1944. A trial has been had, and lengthy briefs have been filed and considered, in addition to the exhibits and stipulations in the record.
The questions presented are:
The first question may be answered briefly in the affirmative. Taxpayer is a paving company, receiving in many cases and in the case of the bonds and lots here involved, payment for work done for various public bodies not in cash but in bonds secured by liens on real estate. In some cases, these bonds had to be further secured by foreclosure. For a period of years, taxpayer did not sell the bonds or lots, but held them waiting for a more favorable market. That action on its part is not inconsistent with its desire and purpose to sell them as soon as a reasonable market presents itself. See the opinion of Judge Orr, in Rollingwood Corp. v. C. I. R., 9 Cir., 1951, 190 F.2d 263 . It is the finding of the court that the bonds or lots here involved were held by the taxpayer and its predecessors primarily for sale to customers in the ordinary course of its business, which required such a course of conduct.