This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Page 1 Revenue Ruling 57-469 Where farm land belonging to an incompetent person is disposed of and other farm land is acquired by means of a sale and purchase agreement, entered into for the reason that the State law does not permit an exchange by a guardian of a ward's property, the transaction constitutes a nontaxable exchange within the meaning of section 1031 of the Internal Revenue Code of 1954 , if the other requirements of that section are satisfied. Advice has been requested whether a transfer of an incompetent's farm for another farm under a sale and purchase agreement, in the circumstances described below, will constitute an exchange for property of a like kind for the pur- poses of section 1031 of the Internal Revenue Code of 1954 . In the instant case, a person, who has been adjudged incompetent by a probate court, was the owner of a small tract of land which had been cultivated and held as an investment by the guardianship estate. When the tract became valuable for residential development, the guardian decided its continued use as farm land was not practical. Not desiring to in- volve the estate in a speculative real estate development project, the guardian entered into an agreement with B , the owner of another tract of farm land, for the exchange of his ward's property for that owned by 5....
View Full Document
This note was uploaded on 04/16/2008 for the course LAW Tax taught by Professor Infanti during the Fall '06 term at Indiana.
- Fall '06