¶2It is not clear from the evidence whether the cash consideration recited in the deed was paid to the taxpayer and she purchased Johnson’s property or whether Kemp paid Johnson directly resulting in an exchange between the taxpayer and Johnson. If it was a sale by the taxpayer there can be no question of the gain derived therefrom; if an exchange, it is our opinion that the cash consideration of $30,000 involved in the transaction clearly establishes the fair market value of the property received by the taxpayer at that amount.
1 B.T.A. 1222
In re STATION
United States Board of Tax Appeals
Decided May 23, 1925
United States Board of Tax Appeals · decided 1925-05-23
Taxpayer purchased real estate in 1917 for $15,000 and in 1919 conveyed it to another, and on the same day there was conveyed to her by a third person other real estate, both deeds reciting a… Held: that taxpayer realized a profit of $15,000 because (1) if the transaction was a sale by taxpayer, a gain unquestionably was realized, and (2) if it was an exchange, the cash consideration of $30,000 clearly established the fair market value of the property received by taxpayer.
Decided 1925-05-23