Strauss v. Commissioner
United States Tax Court
In 1949, petitioners sold their manufacturing plant to the State of California under threat of condemnation. Prior to receipt of the proceeds from the sale, petitioners purchased replacement property with borrowed funds and, immediately upon receipt of the proceeds, repaid the loan.
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In 1949, petitioners sold their manufacturing plant to the State of California under threat of condemnation. Prior to receipt of the proceeds from the sale, petitioners purchased replacement property with borrowed funds and, immediately upon receipt of the proceeds, repaid the loan. Held, repayment of the loan was a sufficient tracing of the award money into the replacement property to meet the requirements of section 112 (f) of the Internal Revenue Code, and gain is recognized only on the $ 48,823.70 which petitioners did not spend in acquiring or improving such replacement property.
1Opinion of the Court
Leon Strauss and Theora Strauss, Petitioners, v. Commissioner of Internal Revenue, Respondent
Strauss v. Commissioner
Docket No. 41549
United States Tax Court
22 T.C. 140; 1954 U.S. Tax Ct. LEXIS 228;
April 27, 1954, Filed April 27, 1954, Filed
Decision will be entered under Rule 50.
In 1949, petitioners sold their manufacturing plant to the State of California under threat of condemnation. Prior to receipt of the proceeds from the sale, petitioners purchased replacement property with borrowed funds and, immediately upon receipt of the proceeds, repaid the loan.
Held, repayment of the loan was a…
2Cases cited5 opinions
- Vim Securities Corporation v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1942
- Bandes v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1934
- Kennebec Box & Lumber Co. v. CommissionerCourt of Appeals for the First Circuit · 1948
- Twinboro Corp. v. CommissionerCourt of Appeals for the Second Circuit · 1945
- Strauss v. CommissionerUnited States Tax Court · 1954