Rust v. Commissioner
United States Board of Tax Appeals
Petitioner and two other individuals in 1927 purchased jointly certain improved real estate situated in the District of Columbia which, during the taxable year 1934, was sold at public auction in foreclosure proceedings brought by the holder of a first trust.
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Petitioner and two other individuals in 1927 purchased jointly certain improved real estate situated in the District of Columbia which, during the taxable year 1934, was sold at public auction in foreclosure proceedings brought by the holder of a first trust. The property was bid in by the holder of a second trust note for an amount considerably less than the second trust and thereafter deeded over jointly to two of the previous owners, pursuant to an agreement between them and the holder of the second trust. Held, that the foreclosure sale terminated the joint venture of the original…
1Opinion of the Court
OPINION.
Smith :
This proceeding is for the redetermination of a deficiency of $450.46 in petitioner’s income tax for the year 1934. The essential facts are stipulated.
H. L. Rust, Jr., hereinafter referred to as the petitioner, and two other individuals, Lawrence A. Baker and C. Griffith Warfield, on January 12, 1927, entered into a contract to purchase certain real estate situated in the District of Columbia, known as 1128-1180 Connecticut Avenue, for a total purchase price of $350,000. The purchasers agreed to pay $50,000 in cash, assume a first trust indebtedness of $160,000, and execute…
2Cited by6 opinions
- Helvering v. Nebraska Bridge Supply & Lumber Co.Court of Appeals for the Eighth Circuit · 1940
- Burde v. CommissionerUnited States Tax Court · 1964
- Burde v. CommissionerUnited States Tax Court · 1964
- Hill v. CommissionerUnited States Board of Tax Appeals · 1939
- Nitzberg v. CommissionerUnited States Tax Court · 1975
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