Pietz v. Commissioner
United States Tax Court
Petitioners and the Grants were equal partners in a partnership formed to build and operate a motel. The venture was unsuccessful and the motel and furnishings were sold. The purchaser assumed the mortgage on the property, paid $ 60,000 cash which was applied on a bank loan, and gave a second mortgage on the property to the Grants. This left the partnership with no assets. Petitioners suffered a loss of investment in the partnership upon termination of the partnership.
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Petitioners and the Grants were equal partners in a partnership formed to build and operate a motel. The venture was unsuccessful and the motel and furnishings were sold. The purchaser assumed the mortgage on the property, paid $ 60,000 cash which was applied on a bank loan, and gave a second mortgage on the property to the Grants. This left the partnership with no assets. Petitioners suffered a loss of investment in the partnership upon termination of the partnership. Held, the loss recognized to petitioners was a capital loss.
1Opinion of the Court
Edward H. Pietz and Gloria Pietz, et. al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Pietz v. Commissioner
Docket Nos. 5854-70, 5855-70, 5856-70
United States Tax Court
59 T.C. 207; 1972 U.S. Tax Ct. LEXIS 30;
November 7, 1972, Filed
Decisions will be entered under Rule 50.
Petitioners and the Grants were equal partners in a partnership formed to build and operate a motel. The venture was unsuccessful and the motel and furnishings were sold. The purchaser assumed the mortgage on the property, paid $ 60,000 cash which was applied on a bank loan, and gave a second mortgage on the…
2Cases cited11 opinions
- Mayerson v. CommissionerUnited States Tax Court · 1966
- Tauber v. CommissionerUnited States Tax Court · 1955
- Standard Oil Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1942
- Refrigeration Engineering Co. v. McKayCourt of Appeals of Washington · 1971
- Stilwell v. CommissionerUnited States Tax Court · 1966
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