S. & B. Realty Co. v. Commissioner
United States Tax Court
1. Petitioner owned rental property which was situated within an urban renewal area. With respect to this property petitioner was given four alternatives: (1) Improvement of the property in accordance with the urban renewal agency's direction; (2) sale to a third party who would make the required improvements; (3) sale to the agency; or (4) condemnation. Petitioner sold his property to a third party.
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1. Petitioner owned rental property which was situated within an urban renewal area. With respect to this property petitioner was given four alternatives: (1) Improvement of the property in accordance with the urban renewal agency's direction; (2) sale to a third party who would make the required improvements; (3) sale to the agency; or (4) condemnation. Petitioner sold his property to a third party. Held, petitioner sold his property under threat of condemnation and, accordingly, is entitled to nonrecognition of his gain under sec. 1033, I.R.C. 1954. S. H. Kress & Co., 40 T.C. 142 (1963). 2…
1Opinion of the Court
OPINION
Issue 1. Threat or Imminence of Condemnation „
Section 1033 (a) provides in part:(a) G-eneuai, Rule. — If property (as a result of its destruction in whole or in part, theft, seizure, or requisition, or condemnation or threat or imminence thereof) is compulsorily or involuntarily converted—
and the proceeds of the conversion are invested in property “similar or related in service or use to the converted property” within the period specified by section 1033(a) (3) (B) ; then “gain shall b¿ recognized only to the extent that the amount realized * * exceeds the cost of such other property *…
2Cases cited7 opinions
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- Malat v. RiddellSupreme Court of the United States · 1966
- Boyle Fuel Co. v. CommissionerUnited States Tax Court · 1969
- John Richard Corp. v. CommissionerUnited States Tax Court · 1966
- Masser v. CommissionerUnited States Tax Court · 1958
2 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
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- Warner v. CommissionerUnited States Tax Court · 1971
- Tecumseh Corrugated Box Co. v. CommissionerUnited States Tax Court · 1990
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