David C. Hutchinson, et al. - Page 1












                                  116 T.C. No. 14                                     


                               UNITED STATES TAX COURT                                


                    DAVID C. HUTCHINSON, ET AL.,1  Petitioners v.                     
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket Nos. 15912-98, 15958-98,    Filed March 14, 2001.               
                           15959-98, 15960-98.                                        


                    Held:  Under the alternative cost method of Rev.                  
               Proc. 92-29, 1992-1 C.B. 748, a real estate developer                  
               may allocate to its bases in lots sold $3,707,662 in                   
               estimated construction costs relating to common                        
               improvements.                                                          
                    Held, further, $5,861,595 in estimated, future-                   
               period interest expense relating to common improvements                
               does not qualify under the alternative cost method for                 
               allocation to the developer’s bases in lots sold.                      


               Neil D. Kimmelfield, for petitioners.                                  
               Gerald W. Douglas and Nhi T. Luu-Sanders, for respondent.              


          1    Cases of the following petitioners are consolidated                    
          herewith: Isaac M. Kalisvaart and Francien Kalisvaart-Valk,                 
          docket No. 15958-98; William T. Criswell and Sharon L. Criswell,            
          docket No. 15959-98; Robert S. Bobosky and Judeen M. Bobosky,               
          docket No. 15960-98.                                                        




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