Smith v. Commissioner
United States Tax Court
The State Highway Commission condemned 19.91 acres of petitioners' land for public use in the construction of an interstate highway system. Petitioners then sold a 1-acre lot of their remaining land at a gain of $ 48,923.16 and claimed that sec. 1033(a)(3)(A) would apply to reduce that gain by $ 36,000, the cost to petitioners of alleged replacement property in respect to the condemned land.
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The State Highway Commission condemned 19.91 acres of petitioners' land for public use in the construction of an interstate highway system. Petitioners then sold a 1-acre lot of their remaining land at a gain of $ 48,923.16 and claimed that sec. 1033(a)(3)(A) would apply to reduce that gain by $ 36,000, the cost to petitioners of alleged replacement property in respect to the condemned land. Held, petitioners' economic unit, their farming business, was not rendered impractical by the taking, they had sufficient remaining cropland to continue their business, and sec. 1033(a)(3)(A) will not…
1Opinion of the Court
O. J. Smith and Minnie R. Smith, Petitioners v. Commissioner of Internal Revenue, Respondent
Smith v. Commissioner
Docket No. 555-70
United States Tax Court
56 T.C. 1249; 1971 U.S. Tax Ct. LEXIS 67;
August 31, 1971, Filed
Decision will be entered for the respondent.
The State Highway Commission condemned 19.91 acres of petitioners' land for public use in the construction of an interstate highway system. Petitioners then sold a 1-acre lot of their remaining land at a gain of $ 48,923.16 and claimed that sec. 1033(a)(3)(A) would apply to reduce that gain by $ 36,000, the cost to petitioners of alleged…
2Cases cited2 opinions
- Masser v. CommissionerUnited States Tax Court · 1958
- Smith v. CommissionerUnited States Tax Court · 1971