England-Cook Co. v. Commissioner

The question before the court being whether a loss suffered by the petitioner as a result of its ownership of mortgaged property was an ordinary loss deductible to the full extent, or a capital loss growing out of a sale or exchange of capital assets and so allowable only to the extent provided in § 117(d), 26 U.S.C.A.Int.Rev.Code; and the court perceiving no distinguishing feature of the transaction by which the property was retransferred by the defaulting debtor to the secured creditors entitled by the terms of the mortgage to enforce a foreclosure, from the fact situations in cases…