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realized by petitioners from the exchange of the 76.5 acres did
not qualify for nonrecognition under section 1031 because
petitioners exchanged assets other than land; i.e., certain
business operating permits issued by Pasco County, goodwill,
going-concern value, and sand. We found that petitioners did not
exchange assets other than the 76.5 acres of land. The parties
to the transaction testified and the documents relating to the
transaction showed that petitioners transferred no assets other
than land. Pasco County did not allow permit holders to transfer
their permits to buyers of their land. We held that petitioners'
transfer of the land qualified as a like-kind exchange under
section 1031.
Discussion
A. Motion for Administrative and Litigation Costs
Generally, a taxpayer who has substantially prevailed in
a Tax Court proceeding may be awarded reasonable administrative
and litigation costs. Sec. 7430(a), (c). To be entitled to an
award, the taxpayer must:
1. Exhaust administrative remedies.1 Sec. 7430(b)(1).
Respondent concedes that petitioners meet this requirement.
1 This requirement does not apply to an award for reasonable
administrative costs. Sec. 7430(b)(1).
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Last modified: May 25, 2011