Harry G. Masser v.
Commissioner case brief
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30 T.C. 741, 1958 U.S. Tax
Ct.
CASE SYNOPSIS: Respondent
Internal Revenue Service (IRS) determined that deficiencies existed
in petitioner taxpayers' federal income taxes. The taxpayers
challenged the IRS's determination claiming that they did not
recognize any gain on the disposition of a certain real property that
was used in their trucking business.
FACTS: The taxpayers operated a trucking business. The taxpayers purchased a piece of land and a building in connection with their trucking business. The land was used as a trucking terminal. Under the threat of condemnation they sold the land and purchased another piece property to be used as a terminal. The taxpayers reported no gain or loss in connection with the transaction. The IRS determined that the taxpayers had recognized a gain in connection with the transaction and the court reversed. The court found that no gain or loss was recognized pursuant to 26 U.S.C.S. § 112(f). The court reasoned that the original property had been involuntarily converted into property similar or related in use or service.
CONCLUSION: The court held that the taxpayers did not recognize any gain on the disposition property that was used in their trucking business.
FACTS: The taxpayers operated a trucking business. The taxpayers purchased a piece of land and a building in connection with their trucking business. The land was used as a trucking terminal. Under the threat of condemnation they sold the land and purchased another piece property to be used as a terminal. The taxpayers reported no gain or loss in connection with the transaction. The IRS determined that the taxpayers had recognized a gain in connection with the transaction and the court reversed. The court found that no gain or loss was recognized pursuant to 26 U.S.C.S. § 112(f). The court reasoned that the original property had been involuntarily converted into property similar or related in use or service.
CONCLUSION: The court held that the taxpayers did not recognize any gain on the disposition property that was used in their trucking business.
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