Thomas McCaffrey Jr. v. Commissioner of Internal Revenue

KALODNER, Circuit Judge.

This petition for review of the Decision of the Tax Court of the United States 1 concerns the applicability of the “nonrecognition of gain” provisions of Section 112(f) of the Internal Revenue Code of 1939, as amended. 2

The issue presented is whether the Tax Court erred in holding that property acquired by the taxpayer with the proceeds he received from the condemnation of his parking lot property was not “similar or related in service or use” to the condemned property.

The critical facts may be stated as follows:

Thomas McCaffrey, Jr., the petitioner (“taxpayer”) 3 has…