Hatboro Nat'l Bank v. Commissioner
United States Tax Court
Petitioner acquired real estate and other assets in 1930 as collateral for a loan. In 1936, pursuant to the instructions of the National Bank Examiner, petitioner's board of directors passed a resolution directing the transfer of the "loan" from the loans and discounts account to the other real estate account. In 1946 petitioner sold part of the real estate pledged as collateral.
Read the full summary
Petitioner acquired real estate and other assets in 1930 as collateral for a loan. In 1936, pursuant to the instructions of the National Bank Examiner, petitioner's board of directors passed a resolution directing the transfer of the "loan" from the loans and discounts account to the other real estate account. In 1946 petitioner sold part of the real estate pledged as collateral. Held, the real estate was held as collateral and petitioner did not realize a capital gain or loss on its sale. Held, further, in computing the proper additions to petitioner's reserve for bad debts for the years…
1Opinion of the Court
OPINION.
BRUCE, Judge:
The principal issue presented is to determine the tax consequences of petitioner’s sale of a one-half interest in certain unimproved lots in 1946.
In view of the shifting positions (including its lack of clarity as to any of them) taken by petitioner — in its returns for the taxable years involved, in its petition, in its opening statement at the hearing, and on brief — it is somewhat difficult to apprehend precisely upon what theory petitioner is relying. In its return for the year 1946 petitioner claimed a long-term capital loss of $7,736 on the sale of lots. Respondent…
2Cases cited7 opinions
- Old Colony Trust Associates v. HassettCourt of Appeals for the First Circuit · 1945
- Jones v. CostlowSupreme Court of Pennsylvania · 1944
- Mayer Tank Mfg. Co. v. CommissionerCourt of Appeals for the Second Circuit · 1942
- Thomas v. Waters Admr.Supreme Court of Pennsylvania · 1944
- Elverson Corporation v. HelveringCourt of Appeals for the Second Circuit · 1941
2 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Hatboro Nat'l Bank v. CommissionerUnited States Tax Court · 1955