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David D. Aughtry and Brett W. Beveridge, for petitioners.
David R. MacKusick, for respondent.
THORNTON, Judge: Respondent determined a $139,180
deficiency in petitioners’ joint 1994 Federal income tax. After
concessions, the sole issue for decision is whether petitioners
are required to recognize income in 1994 as the result of a
deferred exchange that petitioner husband (petitioner) entered
into in 1994 and that was completed in 1995.
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for taxable year 1994. Rule
references are to the Tax Court Rules of Practice and Procedure.
FINDINGS OF FACT
The parties have stipulated some of the facts, which we
incorporate in our findings by this reference.
When they filed their petition, petitioners resided in
Dublin, Georgia.
In the 1960’s, petitioner acquired some 275 acres of
timberland in Laurens County, Georgia. By 1994, some of the
timber on this land had reached maturity. After attending a
seminar on timber exchanges presented by a well-known timber
taxation expert and after consulting with his longtime certified
public accountant, petitioner decided to undertake an exchange of
standing timber for additional acreage containing standing
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