- 24 -
24 T.C. 818, 823-824 (1955), revd. 241 F.2d 87 (5th Cir. 1957),
revd. sub nom. Commissioner v. P.G. Lake, Inc., 356 U.S. 260
(1958); see also Clemente, Inc. v. Commissioner, T.C. Memo. 1985-
367 (8-acre parcel of land was not like kind to gravel extraction
rights in another parcel of land). In addition, for purposes of
section 1031, a short-term leasehold of real property is not
equivalent to a fee interest. See Capri, Inc. v. Commissioner,
65 T.C. 162, 181-182 (1975); May Dept. Stores Co. v.
Commissioner, 16 T.C. 547, 556 (1951); Standard Envelope
Manufacturing Co. v. Commissioner, 15 T.C. 41, 48 (1950).11
Because of the posture of this case, it is unnecessary, and
we do not undertake, to resolve the legal issue whether the like-
kind requirement was satisfied. It suffices to find, as we do,
that petitioner had a bona fide intent that the subject
transaction would meet the like-kind exchange requirement, taking
into account that it constituted an exchange of realty for
realty.
Other relevant factors indicating that petitioner had, at
the beginning of the exchange period, a bona fide intent that
like-kind property would be acquired before the end of the 180-
11 Notably, this characterization of short-term leasehold
interests derives not from any particular State law but from
negative implication of longstanding Treasury regulations which
provide that an exchange of a 30-year lease for a fee interest
qualifies as a like-kind exchange under sec. 1031. See sec.
1.1031(a)-1(c), Income Tax Regs.
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