Bell Lines, Inc. v. United States

CRAVEN, Circuit Judge:

A corporation which trades in old trucks and pays boot in money for new trucks comes under Int.Rev.Code of 1954, § 1031; any gain on the trade-in is not recognized. 1 There is, however, a capital gain, fully recognizable in the year of the transaction, where a corporation sells old trucks at a profit even though the proceeds are used to purchase new trucks. 2 The two prior sentences are, obviously, simply different characterizations of the same economic event: replacement of property held for productive use in trade or business. But upon such characterizations tax…