Cottage Sav. Asso. v. Commissioner
United States Tax Court
Petitioner, a regulated savings and loan institution, entered into reciprocal sales and purchases of loan participations with four other unrelated savings and loan institutions. These transfers were at then-current fair market values, substantially below petitioner's bases in the loans.
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Petitioner, a regulated savings and loan institution, entered into reciprocal sales and purchases of loan participations with four other unrelated savings and loan institutions. These transfers were at then-current fair market values, substantially below petitioner's bases in the loans. Although the transfers were bona fide, they were made solely to produce losses for Federal income tax purposes, in amounts great enough to result in net operating loss carrybacks which generated substantial Federal income tax refunds. Pursuant to a ruling of the Federal Home Loan Bank Board (Memorandum R-49),…
1Opinion of the Court
CHABOT, Judge:
Respondent determined deficiencies in Federal corporate income tax against petitioner for 1974 through 1980, as follows:
Year Deficiency
1974 . $47,029.09
1975 . 62,889.23
1976 . 102,014.57
1977 . 154,520.26
1978 . 185,427.59
1979 .'. 54,187.23
1980 . 73,752.53
After a concession by petitioner,1 the issue for decision2 is whether petitioner realized recognizable losses from sales of 90-percent participations in loan portfolios to other savings and loan institutions, from which petitioner simultaneously acquired 90-percent participations of approximately equal aggregate value and, if so,…
2Cases cited45 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- Towne v. EisnerSupreme Court of the United States · 1918
- Weiss v. StearnSupreme Court of the United States · 1924
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3Cited by13 opinions
- Cottage Savings Assn. v. CommissionerSupreme Court of the United States · 1991
- Laureys v. CommissionerUnited States Tax Court · 1989
- Gantner v. CommissionerUnited States Tax Court · 1988
- San Antonio Savings Association and Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1989
- Cottage Savings Association v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1990
8 more not listed; retrieve them via the Exa API.