Michaels v. Commissioner
United States Tax Court
When petitioners sold their residence, they made the sale contingent upon receiving a discount from the mortgagor upon the prepayment of their recourse mortgage. They subsequently purchased a new residence costing more than the one sold.
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When petitioners sold their residence, they made the sale contingent upon receiving a discount from the mortgagor upon the prepayment of their recourse mortgage. They subsequently purchased a new residence costing more than the one sold. Petitioners included the discount in the gain realized on the sale, but deferred recognition of the gain under sec. 1034, I.R.C. 1954. Respondent determined that the discount should be taxed separately as income from discharge of indebtedness under sec. 61(a)(12). Held: A discount received on the prepayment of a recourse mortgage made in connection with the…
1Opinion of the Court
STERRETT, Chief Judge:
The parties’ cross-motions for summary judgment filed herein were assigned to Special Trial Judge Joan Seitz Pate pursuant to the provisions of section 7456(d) (redesignated as sec. 7443A(b) by the Tax Reform Act of 1986, Pub. L. 99-514, 100 Stat. 2755), and Rules 180 and 181.1 After a review of the record, we agree with and adopt the opinion of the Special Trial Judge which is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
PATE, Special Trial Judge:
This case is before the Court on the parties’ cross-motions for summary judgment under Rule 121. Respondent determined a…
2Cases cited16 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Commissioner v. TuftsSupreme Court of the United States · 1983
- Jarvis v. CommissionerUnited States Tax Court · 1982
- Fairbanks v. United StatesSupreme Court of the United States · 1939
11 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Frazier v. CommissionerUnited States Tax Court · 1998
- Carroll v. Comm'rUnited States Tax Court · 2016
- Gehl v. CommissionerUnited States Tax Court · 1994
- Thomas v. Comm'rUnited States Tax Court · 2010
- Centennial Savings Bank Fsb, Cross-Appellee v. United States of America, Cross-AppellantCourt of Appeals for the Fifth Circuit · 1989
16 more not listed; retrieve them via the Exa API.