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accept the tax consequences of his choice * * * and may
not the enjoy the benefit of some other route he might
have chosen to follow but did not. * * * [Citations
omitted.]
See also Higgins v. Smith, 308 U.S. 473, 477 (1940); Estate of
Durkin v. Commissioner, 99 T.C. 561, 571 (1992). "It would be
quite intolerable to pyramid the existing complexities of tax law
by a rule that the tax shall be that resulting from the form of
transaction taxpayers have chosen or from any other form they
might have chosen, whichever is less." Television Indus., Inc.
v. Commissioner, 284 F.2d 322, 325 (2d Cir. 1960), affg. 32 T.C.
1297 (1959). We have observed that "the taxpayer may have less
freedom than the Commissioner to ignore the transactional form
that he has adopted." Illinois Power Co. v. Commissioner, 87
T.C. 1417, 1430 (1986) (quoting Bolger v. Commissioner, 59 T.C.
760, 767 n.4 (1973)).
Petitioner contends that the corporate minutes from FSRC's
board meetings clearly indicate that petitioner intended to
reorganize the New Jersey business operations in Lake Placid.
The only reference to a reorganization is in the minutes of the
December 19, 1987, shareholders meeting, which state, in
pertinent part, that "until the Park and Fairground business was
cleared up and construction was completed in Lake Placid, we
would not dissolve the corporation and reorganize. At which time
[presumably when the Lake Placid development is completed] all
shares from the park and fairground will be transferred to the
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