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assets in a liquidating distribution, he is not entitled to elect
nonrecognition treatment under section 1033.7
Respondent also determined that petitioner had additional
interest income of $13,370. Gross income includes interest
income. Sec. 61(a)(4). On both his original and amended
returns, petitioner reported only $97 of interest income.
Petitioner's sole argument is that the interest income was
received by petitioner in his fiduciary capacity as an agent for
FSRC and, thus, was properly reportable by FSRC and not by
petitioner. The only evidence introduced by petitioner to
support this argument is his self-serving testimony that he
opened several bank accounts on behalf of FSRC and DHF. However,
petitioner did not even identify these accounts. Neither FSRC
7Even if petitioner were acting as an agent of FSRC with the
intention of completing a sec. 1033 transaction, we still believe
that the provisions of sec. 1033 are inapplicable under these
facts. A threat of condemnation sufficient to invoke provisions
of sec. 1033 exists when a representative of a governmental body
or a public official authorized to acquire property for public
use informs the taxpayer, either orally or in writing, that such
body or such official has decided to acquire the taxpayer's
property. Tecumseh Corrugated Box Co. v. Commissioner, 94 T.C.
360, 376 (1990), affd. 932 F.2d 526 (6th Cir. 1991); Rainier Co.
v. Commissioner, 61 T.C. 68, 76 (1973), revd. on another issue by
unpublished order 538 F.2d 338 (9th Cir. 1975). The property
owner must also reasonably believe that condemnation will occur
if the owner does not sell the property voluntarily to a third
party. Id. In the instant case, the parties have stipulated
that "Neither petitioner nor the shareholders of FSRC or DHF
received any oral or written notice from a township official that
eminent domain or condemnation proceedings were contemplated."
Since petitioner received no communication from Howell Township
officials regarding the possibility of condemnation of the Deep
Hollow Park property, we are not persuaded that the property was
sold under threat of condemnation, and sec. 1033 is unavailable.
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