Warfield v. Commissioner
United States Board of Tax Appeals
The petitioner was the part owner of property, subject to a mortgage, and was unable to meet his share of the interest and curtail of the mortgage debt. Upon a foreclosure proceeding the property was sold at public sale and the petitioner lost his entire investment in the property. Held, that the loss so sustained was an ordinary loss deductible in full and is not a capital loss subject to the limitation of section 117 of the Revenue Act of 1934.
1Opinion of the Court
OPINION.
Smith :
This proceeding is for the redetermination of a deficiency of $171.28 in petitioner’s income tax for 1934. Petitioner alleges that the respondent erred in. adding to his reported income $812.54 “fiduciary income”, and $3,400 claimed as a capital loss on a real estate transaction.
The essential facts are stipulated. On January 12,1927, petitioner and two other individuals, Lawrence A. Baker and H. L. Rust, Jr., entered into a contract to purchase certain real estate situated in the District of Columbia, known as 1128-1130 Connecticut Avenue. The total purchase price under the…
2Cited by2 opinions
- Hill v. CommissionerUnited States Board of Tax Appeals · 1939
- Warfield v. CommissionerUnited States Board of Tax Appeals · 1938