Estate of Morris v. Commissioner
United States Tax Court
H and W owned improved real estate used in a business operated by H. This property was condemned. H and W brought other improved real estate and made specific plans to erect new facilities to be used for similar purposes. Work was begun in accordance with these plans, but H died before the execution of a formal written construction contract.
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H and W owned improved real estate used in a business operated by H. This property was condemned. H and W brought other improved real estate and made specific plans to erect new facilities to be used for similar purposes. Work was begun in accordance with these plans, but H died before the execution of a formal written construction contract. The replacement was subsequently effected by testamentary trustees under H's will in accordance with the plans and within the prescribed time limit of sec. 1033(a)(3)(B). Held, an election under sec. 1033(a)(3)(A) to defer recognition of the gain realized…
1Dissent
Kern, /.,
dissenting: Section 1033(a)(3)(A) provides that “if property * * * is * * * involuntarily converted * * * into money * * * the gam (if any) shall be recognized except * * * if the taxpayer * * * for the purpose of replacing the property so converted, purchases other property similar * * * to the property so converted * * *, at the election of the taxpayer the gain shall be recognized only to the extent that the amount realized upon such conversion * * * exceeds the cost of such other property.” (Emphasis supplied.)
Section 1033 (c) provides that “In the case of property pwrchased by…
2Cases cited9 opinions
- Briggs v. WalkerSupreme Court of the United States · 1898
- Johnston v. WillisCourt of Appeals of Maryland · 1925
- Unsatisfied Claim & Judgment Fund v. HamiltonCourt of Appeals of Maryland · 1969
- Cotton States Fertilizer Co. v. CommissionerUnited States Tax Court · 1957
- In Re Goodman's Estate. Goodman v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1952
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