San Antonio Savings Association and Subsidiaries v. Commissioner of Internal Revenue

JERRE S. WILLIAMS, Circuit Judge:

The Commissioner of Internal Revenue appeals the tax court’s grant of summary judgment to San Antonio Savings Association on its petition for redetermination of a deficiency. The tax court held that San Antonio Savings had realized a recognizable loss by exchanging 90% participation interests in first-mortgage loans in a triangular transaction with two other entities. The court held: (1) The transaction involved the exchange of participation interests in materially different first-mortgage loans. Because the mortgages were materially different, the exchange…