Queensboro Corp. v. Commissioner
United States Board of Tax Appeals
1. Petitioner is held to be a dealer in real estate holding certain property for sale to customers in the ordinary course of its business. Thus, its loss on that property is an ordinary loss. 2. Petitioner capitalized interest on the original mortgage and later mortgages as well as taxes.
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1. Petitioner is held to be a dealer in real estate holding certain property for sale to customers in the ordinary course of its business. Thus, its loss on that property is an ordinary loss. 2. Petitioner capitalized interest on the original mortgage and later mortgages as well as taxes. Held, only the interest on the amount of the original mortgage is a "carrying charge" which section 113(b)(1)(A) of the Revenue Act of 1934 permits a taxpayer to capitalize; held, further, that the basis of the property is reduced by the amount of the depreciation "allowable", although deducted in a lesser…
1Opinion of the Court
THE QUEENSBORO CORPORATION, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Queensboro Corp. v. Commissioner
Docket No. 95628.
United States Board of Tax Appeals
46 B.T.A. 1216; 1942 BTA LEXIS 753;
May 28, 1942, Promulgated
1. Petitioner is held to be a dealer in real estate holding certain property for sale to customers in the ordinary course of its business. Thus, its loss on that property is an ordinary loss.
2. Petitioner capitalized interest on the original mortgage and later mortgages as well as taxes. Held, only the interest on the amount of the original mortgage is a "carrying…
2Cases cited2 opinions
- Kennedy Laundry Co. v. CommissionerUnited States Board of Tax Appeals · 1942
- Queensboro Corp. v. CommissionerUnited States Board of Tax Appeals · 1942