Davies v. Commissioner
United States Tax Court
Petitioner and her sister conveyed an apartment building to an Illinois land trust, for the benefit of themselves, two other sisters, and a brother. Petitioner lived in one apartment, paying rent. The building was sold, the trust terminated, and petitioner bought a house with her share of the proceeds.
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Petitioner and her sister conveyed an apartment building to an Illinois land trust, for the benefit of themselves, two other sisters, and a brother. Petitioner lived in one apartment, paying rent. The building was sold, the trust terminated, and petitioner bought a house with her share of the proceeds. Held, petitioner is not entitled to nonrecognition of any part of her gain under sec. 1034, I.R.C. 1954. Held, further, uncollected loans made by petitioner to the land trust were not bad debts.
1Opinion of the Court
OPINION
1. Section 103J¡, Issue. — Respondent’s position is that the apartment building was in reality held by a partnership, not a trust, and that the partnership entity sold the property. Since section 1034(a)2 requires that petitioner’s old residence be “sold by [her],” respondent contends that when a partner’s residence is owned and sold by the fartnershi'p and replaced by the partner, section 1034 does not apply. In the alternative, respondent argues that only 25 percent (petitioner’s beneficial share of the property) of 33⅜ percent (she resided in one of three apartments) of the gain is…
2Cases cited2 opinions
- American Felt Co. v. BurnetCourt of Appeals for the D.C. Circuit · 1932
- Brubaker v. CommissionerUnited States Tax Court · 1957
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