• Economic Substance Versus Economic Substance
  • April 15, 2010 | Author: Jasper L. Cummings
  • Law Firm: Alston & Bird LLP - Raleigh Office
  • The Supreme Court recently declined to review a decision against a taxpayer that was based on a Code provision stating that section 1031 shall not apply to an exchange that is part of a transaction that was structured to avoid the purposes of section 1031(f). The interesting point about the case is that it applies the law on the basis of the economic substance of the transaction because of a specific grant of authority to do so in section 1031(f)(4). This distinction exists separate and apart from the newly codified economic substance doctrine.