Liant Record, Inc. v. Commissioner
United States Court of Appeals for the Second Circuit
303 F.2d 326 (2d Cir. 1962)
Facts
Liant Record, Inc. (Liant) and several taxpayers (plaintiffs) owned an office building and leased office space to commercial tenants. In 1953, the office building was condemned, and the plaintiffs were compensated in an amount that exceeded their basis in the building. The plaintiffs used all of their compensation to purchase property leased as residential apartments. The plaintiffs treated their exchange of commercial property for residential property as an involuntary conversion. In reliance on § 1033 of the Internal Revenue Code of 1954, the plaintiffs did not report any federally taxable income from the exchange. The commissioner of internal revenue (commissioner) (defendant) determined that the plaintiffs owed capital-gain taxes on the exchange because § 1033 did not apply. The plaintiffs petitioned the tax court for a redetermination. The tax court accepted the commissioner’s interpretation and ruled for the commissioner. The plaintiffs appealed to the United States Court of Appeals for the Second Circuit.
Rule of Law
Issue
Holding and Reasoning (Lumbard, C.J.)
What to do next…
Here's why 710,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 44,600 briefs, keyed to 983 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.
