Section 1031 not lost by failure to follow purchase agreement or identification of twenty possible like kind properties, but is lost for failure to replace in 180 days

Article Abstract:

The Tax Court's 1996 St. Laurent decision on real estate like-kind exchanges was correctly decided based on the unusual facts of the case. The legislative history of Section 1031 is confusing, so the taxpayer and his advisers should have been more heedful of the pitfalls in exchanging 20 like-kind properties. The court held such properties must be replaced in 180 days, but that Section 1031 treatment was not lost by the taxpayer's failure to follow property identification or sales agreement requirements.

Real property exchanges, Like-kind exchanges, Tax-free exchanges

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Tax Court holds inability to develop land does not support claimed loss for want of a realizable event

Article Abstract:

The Tax Court in Lakewood Associates v. Commissioner held against the taxpayer real estate development company and denied its loss deduction claimed after zoning law resulted in its inability to develop purchased land. The court found no taking and no occurrence of an event resulting in loss realization. The land was still valuable as zoned agricultural land.

Public Finance Activities, Tax Deductions & Exemptions, Laws, regulations and rules, Real estate development, Tax deductions, Eminent domain (Law)

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Taxpayer wins nonrecognition of gain under section 1034 for all but part of large parcel

Article Abstract:

A 1997 Tax Court Memorandum decision ruled the IRS could not deny IRC sec. 1034 capital gain recognition to a taxpayer for the residential part of a larger parcel he had sold. The court rejected IRS claims regarding land use restrictions, a lack of residential use, and that the taxpayer held part of the land for investment purposes.

Recognition of gain or loss (Taxation), Recognized gain or loss (Taxation)

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