Tax Court Determines That Gain on Sale of Property to the City Is All Related to the Property and Therefore Is Deferred Under IRC Sec. 1033

BVLaw
Court Case Digests
February 24, 1997
5813 Drinking Places (Alcoholic Beverages)
722410 Drinking Places (Alcoholic Beverages)
federal taxation, condemnation
goodwill, business valuation, appraisal, fair market value (FMV), real estate, condemnation, purchase price, going concern value, settlement

M.I.C. Ltd. v Commissioner
1997 Tax Ct. Memo LEXIS 105; T.C. Memo 1997-96; 73 T.C.M. (CCH) 2098
US
Federal Court
Federal
United States Tax Court
Robert J. Strachota; Robert J. Lunieski
Laro

Summary

The Tax Court determined that none of the price paid for the city’s threatened condemnation of property operated as a multipurpose adult entertainment complex was attributable to goodwill or going-concern value. In so doing, the Tax Court made its own determination of the fair market value of the real estate.

See Also

M.I.C. Ltd. v Commissioner

The Tax Court determined that none of the price paid for the city’s threatened condemnation of property operated as a multipurpose adult entertainment complex was attributable to goodwill or going-concern value. In so doing, the Tax Court made its own determination of the fair market value of the real estate.