Creative Solutions, Inc. (Formerly Alprodco, Inc.) v. United States

RIVES, Circuit Judge.

This appeal involves income taxes for* the fiscal years ending June 30, 1954^ and June 30, 1955. The sole question i# whether property sold as a result of the threat or imminence of condemnation must be sold to the condemning authority in order to have the benefit of the nonrecognition of gain provisions of Sec. 1033 I.R.C.1954, 26 U.S.C.A. § 1033.

Gain from the sale of property is of course, taxable unless the transaction falls within some exception. 26 U.S.C.A. § 1002. Section 1033 provides an exception for compulsory or involuntary conversions of property where the…