Click v. Commissioner
United States Tax Court
78 T.C. 225 (1982)
- Written by Kelsey Libby, JD
Facts
Dollie H. Click (plaintiff) exchanged a parcel of farmland for two residential properties that she gifted to her two adult children and their spouses seven months later. Click had previously encouraged her children to look for new houses to use as “swap” property. Click’s children had wanted to move into larger homes, and they personally selected the two residential properties that Click purchased and later gifted to them. The children began living in the residential properties before they were gifted, claiming to be caretakers. Although Click, an experienced investor, usually managed her own investments, her children took over management of the two residential properties, including paying insurance and property taxes and making custom improvements. On her 1974 tax return, Click did not include any income related to the exchange of properties. The commissioner of internal revenue (defendant) determined that the exchange did not qualify for nonrecognition under I.R.C. § 1031 and assessed a deficiency accordingly. Click petitioned the court, arguing that the exchange was like-kind because she had no firm plan to gift the properties at the time of the exchange and wanted something that would grow in value.
Rule of Law
Issue
Holding and Reasoning (Sterrett, J.)
What to do next…
Here's why 811,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 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.
