Hort v. Commissioner
United States Board of Tax Appeals
1. YEAR OF LOSS. - Where the offer of a taxpayer to sell real estate was accepted in 1933, and, thereafter in that year, deeds were delivered to the purchaser, possession was taken by the purchaser, and the purchaser put up collateral for payment of the purchase price, the seller sustained loss from the disposition of the property in 1933 rather than in a later year. 2. CANCELLATION OF LEASE. - An amount received by the taxpayer from a lessee for the cancellation of a lease…
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1. YEAR OF LOSS. - Where the offer of a taxpayer to sell real estate was accepted in 1933, and, thereafter in that year, deeds were delivered to the purchaser, possession was taken by the purchaser, and the purchaser put up collateral for payment of the purchase price, the seller sustained loss from the disposition of the property in 1933 rather than in a later year. 2. CANCELLATION OF LEASE. - An amount received by the taxpayer from a lessee for the cancellation of a lease was taxable in its entirety as ordinary income and no loss was sustained, either in the amount of the difference between…
1Opinion of the Court
*924OPINION.
Murdock:
The parties are in agreement that the petitioner sustained a capital loss of $167,535.25 from the sale of the two properties to the corporation. The petitioner contends that the loss was sustained in the calendar year 1933, whereas the respondent contends that it was not sustained until 1934. The court said in Commissioner v. Union Pacific Railroad Co., 86 Fed. (2d) 637:
A closed transaction ior tax purposes results from a contract of sale which is absolute and unconditional on the part of the seller to deliver to the buyer a deed upon payment of the consideration and by which…
2Cases cited1 opinion
- Fairbanks v. United StatesSupreme Court of the United States · 1939
3Cited by12 opinions
- Utilities & Industries Corp. v. CommissionerUnited States Tax Court · 1964
- Lee Turzillo and Lucille Turzillo v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1965
- Metropolitan Bldg. Co. v. CommissionerUnited States Tax Court · 1959
- Booth v. CommissionerUnited States Tax Court · 1944
- Center Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1940
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