Commonwealth, Inc. v. Commissioner
United States Board of Tax Appeals
The owner of realty, subject to a mortgage, deeded the property to the mortgagee without consideration and thereby sustained a loss. Held, that the loss so sustained is an ordinary loss deductible in full and is not a capital loss subject to the limitation under section 117 of the Revenue Act of 1934.
1Opinion of the Court
*852OPINION.
Arundell :
There is no issue in this case as to the petitioner's having sustained a deductible loss in 1934 through the conveyance of its equity in the real estate to the mortgagee. As the parties have agreed that the basis for gain or loss was $8,988.85 and the petitioner lost all of its interest in the property, there is no longer any question as to the amount of the loss sustained. The only issue requiring decision is whether the loss was an ordinary loss sustained on abandonment of the property and deductible in full, or whether it was a capital loss arising out of a sale of the…
2Cases cited3 opinions
- Metropolitan Bank v. St. Louis Dispatch Co.Supreme Court of the United States · 1893
- Watts v. SpencerOregon Supreme Court · 1908
- Hulin v. VeatchOregon Supreme Court · 1934
3Cited by10 opinions
- Freeland v. CommissionerUnited States Tax Court · 1980
- Rogers v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1939
- Stamler v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1944
- Street v. WelchDistrict Court, D. Massachusetts · 1939
- Beck v. CommissionerUnited States Tax Court · 1949
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