Chesapeake Financial Corp. v. Commissioner
United States Tax Court
Petitioner, an accrual basis taxpayer, was a mortgage banker who received commitment fees from borrowers for securing commitments from institutional investors for permanent financing of commercial projects. After petitioner obtained a commitment from an investor, it issued its own commitment to the borrower.
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Petitioner, an accrual basis taxpayer, was a mortgage banker who received commitment fees from borrowers for securing commitments from institutional investors for permanent financing of commercial projects. After petitioner obtained a commitment from an investor, it issued its own commitment to the borrower. The commitment fee from the borrower was due and payable when the borrower accepted petitioner's commitment and was received by petitioner either at that time or shortly thereafter. Petitioner deferred recognition of these fees until the permanent loan was funded. Held: Petitioner must…
1Opinion of the Court
Wilbur, Judge:
Respondent determined deficiencies in petitioner’s 1973, 1974, and 1975 Federal income taxes in the respective amounts of $438,892.76, $145,186.67, and $70,163.54. Concessions having been made, the sole issue for decision is whether petitioner was entitled to defer the recognition of permanent loan commitment fees until the related permanent loans were funded.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and the exhibits attached thereto are incorporated herein by this reference. Petitioner Chesapeake Financial Corp. (Chesapeake) is a…
2Cases cited15 opinions
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
- Schulde v. CommissionerSupreme Court of the United States · 1963
- Sandor v. CommissionerUnited States Tax Court · 1974
10 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Johnson v. CommissionerUnited States Tax Court · 1997
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- Fed. Home Loan Mortg. Corp. v. Comm'rUnited States Tax Court · 2005
- Tampa Bay Devil Rays, Ltd. v. Comm'rUnited States Tax Court · 2002
- Chesapeake Financial Corp. v. CommissionerUnited States Tax Court · 1982
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