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Petitioners bear the burden of proving that the determina-
tions in the notice are erroneous. See Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
Claimed Section 1031 Real Estate Transactions
Petitioners claim that, except for the boot which they
recognized in their consolidated return for the taxable year
ended February 28, 1991, they are entitled to nonrecognition
treatment under section 1031 with respect to the aggregate gains
realized during that taxable year as a result of OIP's disposi-
tion of lots 11 and 12 and OIP's 25-percent interests in lots 14
and 15. Respondent counters that the record does not support
petitioners' position.7
Section 1031 provides in pertinent part:
(a) Nonrecognition of Gain or Loss From Exchanges
Solely in Kind.--
(1) In general.--No gain or loss shall be
recognized on the exchange of property held for
productive use in a trade or business or for in-
vestment if such property is exchanged solely for
property of like kind which is to be held either
for productive use in a trade or business or for
investment.
* * * * * * *
(3) Requirement that property be identified
and that exchange be completed not more than 180
days after transfer of exchanged property.--For
7We note that the parties do not rely on sec. 1.1031(k)-1,
Income Tax Regs., in advancing their respective positions under
sec. 1031. In general, those regulations are effective for
transfers of property occurring on or after June 10, 1991. See
sec. 1.1031(k)-1(o), Income Tax Regs.
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