- 13 -
gain from the $1.2 million exchange price for the 76.5 acres
under section 1031. Respondent concedes that petitioners may
defer the gain under section 1031 to the extent that it relates
to the land. However, respondent contends that petitioners
exchanged certain business operating permits, goodwill, going-
concern value, and property held for sale (i.e., sand), which are
nonqualifying properties under section 1031.
B. What Petitioners Transferred to the Buyers
1. Whether Petitioners Transferred Tangible Property Other
Than Land
Petitioners contend that they transferred only land to the
buyers. Respondent contends that petitioners exchanged land and
other assets. We agree with petitioners.
Mrs. Beeler, Dakic, Burke (the buyers' attorney), and
Gilmore (petitioners' attorney) testified that the only asset
petitioners transferred was real property. The deed conveying
the 76.5 acres states that petitioners conveyed land to the
buyers; it does not state that petitioners conveyed anything
else. There are no other documents conveying title from
petitioners to the buyers for any other property. The parties
treated the land as the only property transferred for title
insurance and real estate transfer tax purposes. There were no
bills of sale for any chattels. There is no evidence to support
respondent's contention that petitioners exchanged an office, a
fence, vehicles, equipment, or anything other than land.
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011