Starker v. United States
United States Court of Appeals for the Ninth Circuit
602 F.2d 1341 (1979)
Relevant factsFree
T.J. Starker (plaintiff) conveyed Oregon timberland to Crown Zellerbach in exchange for a contractual right to receive suitable replacement properties within five years (or cash plus a 6% annual growth factor), and over the following two years Crown conveyed ten parcels to Starker and two directly to his daughter; the IRS assessed deficiencies rejecting Starker's characterization of the transaction as a tax-deferred like-kind exchange, and the district court ruled for the IRS.
IssueFree
Whether the capital-gains tax exemption for like-kind exchanges applies even if the property exchange is delayed by contract.