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ended on December 31, 1993, and pertained to the additional
conversion proceeds that Mr. Shipes received on February 18,
1991.
Respondent disagrees with petitioners' multiple replacement
period argument and maintains that section 1033 only authorizes
the use of a single replacement period, a period that, in this
case, ended on December 31, 1988. We agree with respondent.
Nothing in the Code or the regulations authorizes the use of
multiple replacement periods as maintained by petitioners.
Similarly, the case law precludes the use of multiple replacement
periods as well. Two of the three cases cited by petitioners do
not involve the application of section 1033 and lend no support
to our analysis of the instant case.3 The final case cited by
petitioners, Conlorez Corp. v. Commissioner, 51 T.C. 467 (1968),
is inconsistent with their argument.4
3Neither Patrick McGuirl, Inc. v. Commissioner, 74 F.2d 729
(2d Cir. 1935), nor Covered Wagon, Inc. v. Commissioner, 369 F.2d
629 (8th Cir. 1966) involves sec. 1033. Therefore, neither
supports petitioners' argument.
4The facts of the instant case are indistinguishable from
the facts of Conlorez Corp. v. Commissioner, 51 T.C. 467 (1968).
The taxpayer in the Conlorez case had property that was condemned
by the government. Shortly thereafter, the government paid the
taxpayer an amount that exceeded that taxpayer's basis in the
condemned property. Sometime later, more than 2 years following
the close of the taxable year during which the government paid
the taxpayer the above-mentioned amount, a court awarded the
taxpayer an additional amount which the taxpayer subsequently
used to replace the condemned property. This Court held that,
because the taxpayer realized gain in the taxable year that it
received the first payment, and because the purported replacement
(continued...)
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