Templeton v. Commissioner
United States Tax Court
When P learned that some of his unimproved land would be condemned, he caused TPT to be formed and transferred to it other unimproved land owned jointly with his children. Upon receiving the condemnation award, P transferred the proceeds to TPT in exchange for additional shares of its stock. TPT subsequently used a substantial portion of such proceeds to purchase property from P and his children.
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When P learned that some of his unimproved land would be condemned, he caused TPT to be formed and transferred to it other unimproved land owned jointly with his children. Upon receiving the condemnation award, P transferred the proceeds to TPT in exchange for additional shares of its stock. TPT subsequently used a substantial portion of such proceeds to purchase property from P and his children. Held, P did not acquire TPT stock for the purpose of replacing condemned property within the meaning of sec. 1033(a)(3)(A), I.R.C. 1954.
1Opinion of the Court
OPINION
Simpson, Judge:
The Commissioner determined the following deficiencies in the petitioners’ Federal income tax:
Year Deficiency
1969_ $76,399.36
1970_ 4,531.79
1971_ 2,348.27
The issue to be decided is whether, under section 1033 of the. Internal Revenue Code of 1954,1 the petitioners are entitled to defer the recognition of gain realized from the condemnation of property owned by Frank G. Templeton.
All of the facts have been stipulated, and those facts are so found.
The petition herein was timely filed by Frank G. Templeton and Helen M. Templeton, his wife, who maintained their legal…
2Cases cited23 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. TowerSupreme Court of the United States · 1946
- Higgins v. SmithSupreme Court of the United States · 1940
- Weiss v. StearnSupreme Court of the United States · 1924
18 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Templeton v. CommissionerUnited States Tax Court · 1976
- Hart Schaffner & Marx & Subsidiaries v. CommissionerUnited States Tax Court · 1982
- Kahl v. CommissionerUnited States Tax Court · 1986
- Templeton v. CommissionerUnited States Tax Court · 1976
- Templeton v. CommissionerUnited States Tax Court · 1976