June Pinson Carlton and Charles T. Carlton, as Administrators of the Estate of Thad H. Carlton, and June Carlton v. United States

GEWIN, Circuit Judge:

This is an appeal from a judgment of the United States District Court for the Southern District of Florida denying the claim of the appellants for a refund of income taxes and interest paid after a deficiency was assessed by the Internal Revenue Service for the tax year 1959. In their joint return for 1959, the appelants 1 did not recognize the gain realized on the transfer of several parcels of real property but treated the transfers as an exchange of property under § 1031 of the I.R.C. of 1954. The I.R.S. asserted that the transfers constituted a sale and not an…