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Case Study: Sandoval V. Texas

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Thomas C. Sandoval Jr and Bobbie J. Sandoval owned an Allied Electric and Air Conditioning Co. in Hoefgen Avenue in San Antonio. In 1990, City of San Antonio threatened to condemn their Hoefgen Avenue property. They received $371,486 condemnation proceeds from the sale of property. They elected to defer the gain under section 1033 by buying a replacement property. In1991, they bought a real property located at Babcock road in San Antonio with Gary A. Burnett to create a joint venture called TGR partnership. In 1992, petitioner and partner sold the Babcock property. In 1993, they acquired Warfield drive property with Gary A. Burnett in a joint venture to generate rental income. The court conclude that the Babcock road property does not qualify

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