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
Mendham Corporation, a Corporation of New Jersey, Petitioner, v. Commissioner of Internal Revenue, Respondent
Mendham Corp. v. Commissioner
Docket No. 6007
United States Tax Court
9 T.C. 320; 1947 U.S. Tax Ct. LEXIS 112;
September 10, 1947, Promulgated
Decision will be entered under Rule 50.
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…
2Cases cited9 opinions
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- 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
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