Newhouse v. Commissioner
United States Tax Court
Held: The proceeds from a forced sale of collateral by a creditor made in circumstances of the debtor's insolvency were properly applied by the creditor to unpaid principal on the indebtedness. Accordingly, where such proceeds were insufficient in amount to cover even the principal due on the secured obligation, the debtor was not entitled to any deduction for interest paid.
1Opinion of the Court
George R. Newhouse and Helen C. Newhouse, Petitioners v. Commissioner of Internal Revenue, Respondent
Newhouse v. Commissioner
Docket No. 969-71
United States Tax Court
59 T.C. 783; 1973 U.S. Tax Ct. LEXIS 159; 59 T.C. No. 77;
March 12, 1973, Filed
Decision will be entered for the respondent.
Held: The proceeds from a forced sale of collateral by a creditor made in circumstances of the debtor's insolvency were properly applied by the creditor to unpaid principal on the indebtedness. Accordingly, where such proceeds were insufficient in amount to cover even the principal due on the secured…
2Cases cited16 opinions
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- Helvering v. Midland Mutual Life InsuranceSupreme Court of the United States · 1937
- Story v. LivingstonSupreme Court of the United States · 1839
- Rushing v. CommissionerUnited States Tax Court · 1972
- Sherman v. CommissionerUnited States Tax Court · 1952
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