Mercantile Trust Co. v. Commissioner
United States Board of Tax Appeals
Where a contract provided conditionally for the exchange of investment property for property of like kind to be held for investment, and cash, or alternatively its sale, and the property was in fact so exchanged, held, the transaction was an exchange and the recognized gain therefrom for income tax purposes is limited to the cash received therein, even though the taxpayer was influenced in using this method rather than an outright sale of such property by his desire to…
Read the full summary
Where a contract provided conditionally for the exchange of investment property for property of like kind to be held for investment, and cash, or alternatively its sale, and the property was in fact so exchanged, held, the transaction was an exchange and the recognized gain therefrom for income tax purposes is limited to the cash received therein, even though the taxpayer was influenced in using this method rather than an outright sale of such property by his desire to postpone or avoid income taxes upon its disposition. Revenue Act of 1928, secs. 112(b)(1) and 112(c)(1).
1Opinion of the Court
OPINION.
Leech:
This proceeding seeks redetermination of an .income tax deficiency of $21,285.68 determined against petitioners for the calendar year 1929.
Petitioners assign as error, the respondent’s determination that they sold certain real estate, theretofore held for investment. Petitioners allege that such property was exchanged for cash and like property to be held for investment. In the alternative, if the transaction is held to be a sale and purchase and not an exchange, petitioners assign error in respondent’s determination of the March 1, 1913, value of the property, disposition of…
2Cases cited3 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- United States v. PhellisSupreme Court of the United States · 1921
- Bullen v. WisconsinSupreme Court of the United States · 1916
3Cited by32 opinions
- T. J. Starker v. United StatesCourt of Appeals for the Ninth Circuit · 1979
- June Pinson Carlton and Charles T. Carlton, as Administrators of the Estate of Thad H. Carlton, and June Carlton v. United StatesCourt of Appeals for the Fifth Circuit · 1967
- Woodbury v. CommissionerUnited States Tax Court · 1967
- Biggs v. CommissionerUnited States Tax Court · 1978
- James Alderson, Surviving Husband and Estate of Clarissa E. Alderson, Deceased, James Alderson v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
27 more not listed; retrieve them via the Exa API.