Deed in Lieu Case law

From the briarpark ltd case previously cited

The Commissioner of Internal Revenue asserts that "Congress intended the words `sale or exchange' to have a broad meaning, not to be limited to the standard transfer of property by one person to another in exchange for a stated consideration in money or money's worth." Freeland v. Commissioner , 74 T.C. 970, 980 (1980); see Helvering v. Hammel , 311 U.S. 504 (1941). For example, it has long been established that a foreclosure sale constitutes a "disposition of property" within the meaning of § 1001(b). Id . at 506-511; Cox , 68 F.3d at 133. A nonjudicial foreclosure sale is also a transaction that triggers taxable gain. Chilingirian v. Commissioner , 918 F.2d 1251, 1253 (6th Cir. 1990). It is also well settled that the transfer of property by deed in lieu of foreclosure is the functional equivalent of a "sale or exchange" for federal income tax purposes. Allan v. Commissioner , 856 F.2d 1169, 1172 (8th Cir. 1988); see Laport v. Commissioner , 671 F.2d 1028 (7th Cir. 1982); see Millar v. Commissioner , 67 T.C. 656 (1977), aff'd , 577 F.2d 212 (3d Cir.), cert denied , 439 U.S. 1046 (1978).