3 ratable shares as the shareholders of the corporation, pursuant to section 1366.2 Upon examination of the S return, respondent determined that the income shown by petitioners resulting from the sale of certain property by the corporation was not correctly reported in the corporation's S return nor by petitioners, and the above notices of deficiency resulted. The issues that the Court must decide are: (1) Whether the corporation's transfer of land to Penn- Daniels, Inc., and its subsequent acquisition of land from Scott Coggeshall and the Coggeshall Construction Co. (Coggeshall property), and land from Marcellene J. Inness was an exchange of like-kind property within the meaning of section 1031(a); and (2) whether petitioners correctly computed and reported the gain resulting from these transactions. The corporation's place of business was at Macomb (McDonough County), Illinois. The corporation had been engaged in the general construction business in that vicinity since 1966. The Coggeshall Construction Co. (the Coggeshall Co.) and its predecessor had been engaged in the general construction business, including road building, in this same area since 1952. The corporation has acted as subcontractor with respect to 2 The parties agree that any gain to be recognized as a consequence of the within transactions must be recognized by the shareholders of the corporation, petitioners in these cases.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011