San Diego Law Review

Library of Congress Authority File


Document Type



In Bongiovanni v. Commissioner, the Second Circuit Court of Appeals applied a new interpretation of Section 357 to avoids taxing income recognized after the taxpayer transfers property to a corporation under a Section 351 exchange. However, this decision is ripe for review by the United States Supreme Court because it directly opposes Tax Court precedent and a similar Seventh Circuit case. This article recounts the background that led to Bongiovanni v. Commissioner, as well as examining cash versus accrual basis under Section 357(c) to decide whether the Bongiovanni decision actually comports with economic realities. In conclusion, the Comment concludes by recommending that Congress resolve the conflicting interpretations of Section 357.

Included in

Law Commons