Brons Hotels v. Commissioner
United States Board of Tax Appeals
RECOGNITION OF GAIN. - Petitioner acquired certain real estate and assumed a mortgage indebtedness. In taxable year it exchanged such property for other real estate, the other party to the exchange paying some cash and assuming the mortgage indebtedness.
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RECOGNITION OF GAIN. - Petitioner acquired certain real estate and assumed a mortgage indebtedness. In taxable year it exchanged such property for other real estate, the other party to the exchange paying some cash and assuming the mortgage indebtedness. Held, that the transaction was not a tax-free exchange; that the mortgage indebtedness assumed must be treated as money received within the purview of section 112(c)(1) of the Revenue Act of 1928 and the corresponding section of the Revenue Act of 1926; and that the entire gain, being less than the mortgage indebtedness assumed, must be…
1Opinion of the Court
OPINION.
Mellott:
In this proceeding petitioner contests a deficiency in income tax determined by the respondent in the amount of $7,590.95 for the fiscal year ended May 31, 1928. The sole question presented for our determination is the amount of taxable gain to be recognized in connection with the transaction shown in the stipulation of facts filed before us, which is as follows:
Stipulation of Facts.
■1. Petitioner is a corporation organized under the laws of the State of Illinois on June 5, 1925. Its principal place of business is 19 East Ohio Street, Chicago, Illinois.
2. Petitioner filed its…
2Cases cited7 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Hawaii v. MankichiSupreme Court of the United States · 1903
- Graham & Foster v. GoodcellSupreme Court of the United States · 1931
- In Re ChapmanSupreme Court of the United States · 1897
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3Cited by22 opinions
- Gensinger v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1953
- Maher v. CommissionerUnited States Tax Court · 1970
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- W. Horace Williams Co. v. CocrehamSupreme Court of Louisiana · 1948
- Pleasanton Gravel Co. v. CommissionerUnited States Tax Court · 1985
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