Nature of the Case
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Facts
Marsh (D) owned two parcels of land in Boston. D conveyed the properties and got $2,300,000 in cash and then got a leaseback. The conveyances were unconditional with no option to repurchase. The vendees were in no way connected with D. The rentals on the lease were at market rate. D claimed the transaction and sought the difference between the adjusted basis and the cash. This was $2,500,000. The Commissioner disallowed the deduction in that it was the exchange of property of like kind under 1031(a). The Commissioner viewed the transaction as an exchange for a fee interest for a long-term lease.
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