Issues
§1001(a) of the Internal Revenue Code (26 U.S.C. § 1001) requires that the tax consequences of a gain or loss in property value be deferred until it is realized by "the sale or other disposition of property". Since the transaction was certainly not a sale, Justice Marshall identified the main legal issue to be whether the exchange was a "disposition of property."
- The Commissioner had argued that an exchange of properties can be a "disposition" only if the properties involved in the transaction are "materially different".
- Cottage Savings argued that "material difference" was not a requirement—that any exchange of property could be considered a disposition. Just in case, it also argued that the participation interests exchange were materially different because they were secured by different real property.
Thus, to determine whether the exchange was a "disposition of property," the court first had to determine whether §1001 incorporated a "material difference" requirement, and if so, what that requirement involved.
Read more about this topic: Cottage Savings Association V. Commissioner
Famous quotes containing the word issues:
“The “universal moments” of child rearing are in fact nothing less than a confrontation with the most basic problems of living in society: a facing through one’s children of all the conflicts inherent in human relationships, a clarification of issues that were unresolved in one’s own growing up. The experience of child rearing not only can strengthen one as an individual but also presents the opportunity to shape human relationships of the future.”
—Elaine Heffner (20th century)
“I can never bring you to realize the importance of sleeves, the suggestiveness of thumb-nails, or the great issues that may hang from a boot-lace.”
—Sir Arthur Conan Doyle (1859–1930)
“The hard truth is that what may be acceptable in elite culture may not be acceptable in mass culture, that tastes which pose only innocent ethical issues as the property of a minority become corrupting when they become more established. Taste is context, and the context has changed.”
—Susan Sontag (b. 1933)