- 15 - allowing an unlimited number of replacement properties to be identified, would make the identification requirement meaningless. The fact that Congress included an identification requirement suggests that an identification of an unlimited number of properties could result in none being identified. In the instant case, however, we need not, and do not, decide the outer limit of how many replacement properties the statute permits taxpayers to identify. Petitioner’s effort to comply with the statute by identifying 20 specific properties to be received in the exchange appears to have been made in good faith and does not cause an absurd result, given the fact that the statute is silent as to the permissible number and the legislative history is an unreliable indicator of the proper limitation.4 Petitioner sought advice and, because the regulations were not published, even in proposed form, at the 3(...continued) 569, 571 (1966). 4 This is not to say, however, that the requirements of sec. 1.1031(k)-1(c)(4), Income Tax Regs., T.D. 8346, 1991-1 C.B. 150, 157, generally limiting to three the number of properties that taxpayers are entitled to identify, or any number of properties where their total value does not exceed 200 percent of the fair market value of the properties relinquished, is not a valid exercise of the Commissioner’s authority to interpret a statute which is silent on the matter. As stated above, that regulation is not before us because it is not effective for the year in issue.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011