WAGNER MILLS, INC. v. COMMISSIONER
530 F.2d 827, 76-1 USTC ¶ 9298, 37 AFTR2d 76-1018 (8th Cir. 1976) (aff'g)
[ Code Secs. 162 and 263]
Business expenses v. capital expenditure: Farmer: Development costs: Grove upkeep: Citrus grower.--The taxpayer had entered into agreements with a citrus nursery whereby the nursery had agreed to plant and grow a certain number of trees for the taxpayer. During the growing period, the taxpayer assumed the risk of any loss of the nursery stock occasioned by acts of God or of other casualties beyond the growers control. The Court of Appeals upheld the Tax Court's finding that the taxpayer was required to capitalize the costs of acquiring and planting seed and of grafting the bad stock. However, the taxpayer was allowed to deduct the remaining amounts paid pursuant to the contract.
Joseph Ginsburg, Norman Krivosha, Douglas L. Curry, Ginsburg, Rosenberg, Ginsburg, and Krivosha, 820 Stuart Bldg., Lincoln, Neb., for appellee. Robert A. Bernstein, Scott P. Crampton, Assistant Attorney General, Gilbert E. Andrews, Grant W. Wiprud, Department of Justice, Washington, D. C. 20530, for appellant.
Before Gibson, Chief Judge, and Heaney and Webster, Circuit Judges.
Order of Affirmance
Upon a careful consideration of the record, the briefs, and the arguments of the parties, the Court has concluded that the judgment of the Tax Court, unofficially reported at [CCH Dec. 32,817(M) P-H Memo. T.C. ¶ 74-274, is based on findings that are not clearly erroneous, that no error of law appears, and that an opinion would have no precedential value. For these reasons, the judgment appealed from is hereby affirmed on the basis of the opinion of the Tax Court.