Alderson v. Commissioner

317 F.2d 790 (1963)

Case BriefRelatedOptions
From our private database of 43,000+ case briefs, written and edited by humans—never with AI.

Alderson v. Commissioner

United States Court of Appeals for the Ninth Circuit

317 F.2d 790 (1963)

Facts

In May 1957, James and Clarissa Alderson (plaintiffs) negotiated to sell their property in Buena Park to Alloy Die Casting Company (Alloy), and Alloy deposited $17,205 in escrow towards the purchase. Although the Aldersons were willing to take a cash offer for the Buena Park property, their first choice was to exchange it for a like-kind property to use in trade or for investment. Shortly after the Aldersons and Alloy began negotiations, the Aldersons found a property in Salinas. The Aldersons decided that they wanted to exchange their Buena Park property for the Salinas property instead of making a cash sale. As a result, Alloy deposited additional funds needed in escrow to secure the Salinas property with the intentions of purchasing the Salinas property and exchanging it with the Aldersons for the Buena Park property. Further, the escrow instructions for the Salinas property stated that title could be given to Alloy if Alloy immediately recorded a deed from Alloy to the Aldersons. The exchange of properties was made shortly after, and all deeds were recorded on September 4, 1957. The Internal Revenue Commissioner (the commissioner) (defendant) assessed the Aldersons a deficiency on their federal income taxes, having determined that the transfer of the Buena Park property was a sale in which the Aldersons realized a long-term capital gain and not a nontaxable exchange of property. The Aldersons sought review of the commissioner’s determination from the United States Tax Court. The Tax Court agreed with the commissioner, finding that the transactions regarding the two properties did not meet the definition of an exchange under § 1031(a) of the Internal Revenue Code of 1954. The Aldersons appealed.

Rule of Law

Issue

Holding and Reasoning (Crary, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 688,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 688,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 43,000 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 688,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 43,000 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership