Henry Kinney and Anita Kinney v. United States

The evidentiary facts from which this income tax controversy arises are not in dispute and are set forth in the opinion of the district court. Kinney v. United States, D.C.W.D.La.1964, 228 F.Supp. 656. The question is whether the income tax liability resulting from a sale and transfer of the taxpayer’s interest in the assets of a partnership to his co-partner will be less when accomplished, as it was, by a series of nearly simultaneous and closely related steps, than such tax consequences would be if the sale and transfer had been made by a single act.

The district court, after a consideration…