- 18 - petitioner argues that Farm & Grove satisfies the exception for sales of residential lots to individuals. The sale of a residential lot to an individual in the ordinary course of a taxpayer’s business is not considered a dealer disposition if neither the seller nor any person related to the seller can make any improvements on the lot. Sec. 453(l)(2)(B)(ii)(II). In the instant case, the transfer of lots was not made to an individual. The property transfer was to a partnership, the Kiddies 38/91 partnership. The common, ordinary, and plain meaning of section 453(l)(2)(B)(ii)(II) requires that the transfer be made to an individual. The language seems to be so unambiguous as to give no alternative but to apply it precisely as written. We find nothing that would support an interpretation of section 453(l)(2)(B)(ii)(II) that differs from the words of the statute, and petitioner has not provided us with any reasoning to support his argument. Petitioner also has not provided sufficient evidence that the 53 lots transferred were residential lots. For purposes of section 453(l)(2)(B)(ii)(II), a residential lot is a parcel of unimproved land upon which the purchaser intends to construct (or intends to contract to have another person construct) a dwelling unit for use as a residence by the purchaser. Wang v. Commissioner, T.C. Memo. 1998-127.Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011