Larry L. Beeler and Cynthia J. Beeler - Page 13

                                                - 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  Next

Last modified: May 25, 2011