Mendham Corp. v. Commissioner
United States Tax Court
Foreclosure of mortgage resulting in elimination of mortgage debt and transfer of New Jersey property previously acquired by petitioner, subject to transferor's basis, in tax-free exchange, held to result in taxable gain to extent that proceeds of mortgage received by transferor-mortgagor exceeded adjusted basis for the property, notwithstanding that petitioner was not itself liable on the mortgage.
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Foreclosure of mortgage resulting in elimination of mortgage debt and transfer of New Jersey property previously acquired by petitioner, subject to transferor's basis, in tax-free exchange, held to result in taxable gain to extent that proceeds of mortgage received by transferor-mortgagor exceeded adjusted basis for the property, notwithstanding that petitioner was not itself liable on the mortgage. Lutz & Schramm Co., 1 T. C. 682; R. O'Dell & Sons Co., 8 T. C. 1165, followed; Charles L. Nutter, 7 T. C. 480, distinguished.
1Opinion of the Court
OPINION.
Opper, Judge:
Superficially it might appear that the present proceeding, involving an issue similar to the one presented by R. O'Dell & Sons Co., 8 T. C. 1165, is distinguishable from that case because of this petitioner’s freedom from liability on the mortgage debt. The O'Dell case, however, was decided on the authority of Lutz & Schramm Co., 1 T. C. 682, which deals with the question, not from the standpoint of the elimination of an indebtedness, cf. United States v. Kirby Lumber Co., 284 U. S. 1, but as gain upon the final' disposition of property.
Here, as in R. O'Dell & Sons Co.,…
2Cases cited8 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Virginian Hotel Corporation v. Helvering, Commissioner of Internal RevenueSupreme Court of the United States · 1943
- Commissioner v. MunterSupreme Court of the United States · 1947
3 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Commissioner v. TuftsSupreme Court of the United States · 1983
- Edgar v. CommissionerUnited States Tax Court · 1971
- Estate of Delman v. CommissionerUnited States Tax Court · 1979
- Woodsam Associates, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1952
- Millar v. CommissionerUnited States Tax Court · 1977
22 more not listed; retrieve them via the Exa API.