Pellar v. Commissioner
25 T.C. 299 (1955)
Nature Of The Case
This section contains the nature of the case and procedural background.
Facts
Ps, husband, and wife, entered into a contract for a house to be built for $40,000. Because of his friendship for and pleasant business relationships with Sam Briskin, the wife's father, and because Briskin had recommended his organization to others, together with his hope of future business stemming from Briskin and his recommendations, it was builder's intention to build the house without profit. There was no written agreement between Ps and the builder. It was eventually determined that the cost would actually be about $80,000. The builder reaffirmed that he would stand by his verbal agreement. Letters were exchanged wherein Ps would only pay $40,000. The total cost of construction of the house was $101,936.52. In August 1949, the fair market value of the house was $70,000. Ps spent $55,000 total including prepping the land for construction. D determined that P had received $15,000 in income. Ps filed this case.
Issues
The legal issues presented in this case will be displayed here.
Holding & Decision
The court's holding and decision will be displayed here.
Legal Analysis
Legal analysis from Dean's Law Dictionary will be displayed here.
© 2007-2025 ABN Study Partner