Liant Record, Inc. v. Commissioner
United States Court of Appeals for the Second Circuit
303 F.2d 326 (1962)
Relevant factsFree
Liant Record, Inc. and other taxpayers (plaintiffs) owned an office building leased to commercial tenants, which was condemned in 1953; they received compensation exceeding their basis and used all of it to buy residential apartment property, treating the exchange as a nontaxable involuntary conversion under § 1033. The commissioner (defendant) determined this didn't qualify, finding the plaintiffs owed capital-gains tax; the tax court accepted the commissioner's view and ruled against the plaintiffs, who appealed.
IssueFree
Whether a federal taxpayer's exchange of assets may be nontaxable only if there is a continuity of interest between the old and new assets.