- 25 - automobile, a 1981 Buick, to make business trips on behalf of H&B. Petitioners also appear to argue that petitioner received the Lincoln in a like-kind exchange under section 1031. We find petitioners' argument without merit. Petitioner failed to introduce documentary evidence that he received the Lincoln Mark VII in exchange for a tractor- trailer, and there is no documentary evidence that petitioner owned a tractor-trailer other than the one he testified that he contributed to Pet-Don. Moreover, Pet- Don, and not petitioner, was the record owner of the Lincoln Mark VII at all relevant times. Essentially, petitioners argue that they exchanged a tractor-trailer which they did not own for an automobile which they did not own. This is clearly beyond the scope of section 1031. Furthermore, section 1031 requires that both the property transferred and the property received in a like- kind exchange be held primarily for productive use in a trade or business, or for investment. Sec. 1031(a)(1). Petitioners have not shown that they held the Lincoln Mark VII for productive use in a trade or business or for investment. Thus, even if we accepted petitioner's characterization of the transaction, section 1031 would not apply in this case. Accordingly, we reject petitioners'Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Next
Last modified: May 25, 2011