Brief Fact Summary. The text has chosen to exclude the facts of the case.
Synopsis of Rule of Law. A sale of property is transferring property in consideration of a definite price in terms of money, and an exchange of property is transferring without the exchange of money.
Held. The United States Seventh Circuit Court of Appeals held that the presence of a small amount of cash to adjust the difference in value of the property being exchanged does not disqualify it as an exchange.
Discussion. While the general rule is that an exchange of property does not include money, the Court of Appeals found that a small amount of cash paid by the taxpayer may be considered as representing “the purchase price of excess value of like property received.”