Community Bank v. Commissioner
United States Tax Court
Community Bank made loans to customers secured by real property. Upon default under the loans, the bank foreclosed on the real property securing the loans. The bank then acquired title to the property at foreclosure sales which were conducted in accordance with the provisions of the laws of the State of California. The bank determined that the bid price made by it at the foreclosure sales represented fair market value of the real property acquired.
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Community Bank made loans to customers secured by real property. Upon default under the loans, the bank foreclosed on the real property securing the loans. The bank then acquired title to the property at foreclosure sales which were conducted in accordance with the provisions of the laws of the State of California. The bank determined that the bid price made by it at the foreclosure sales represented fair market value of the real property acquired. Held, for purposes of determining gain or loss under sec. 1.166-6, Income Tax Regs., fair market value of the properties is equal to the bid…
1Opinion of the Court
Wiles, Judge:
Respondent determined deficiencies in petitioner’s income tax for taxable years ending December 31, 1966, and December 31, 1967, in the amounts of $234,007.61 and $527,640.00, respectively. The parties have settled several issues. The remaining issue for decision is whether petitioner realized a gain upon acquisition of real property through foreclosure proceedings. If it is determined that petitioner had realized a gain, a second issue is whether the gain is treated as an ordinary or capital gain. If it is determined that petitioner realized no gain, respondent alternatively…
2Cases cited11 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Helvering v. WinmillSupreme Court of the United States · 1938
- Gilberg v. CommissionerUnited States Tax Court · 1971
- Hadley Falls Trust Co. v. United StatesCourt of Appeals for the First Circuit · 1940
- Brown v. United StatesCourt of Appeals for the Third Circuit · 1938
6 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Community Bank v. CommissionerUnited States Tax Court · 1982
- Community Bank v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1987
- Gibraltar Financial Corp. v. United StatesUnited States Court of Claims · 1986
- Community Bank v. CommissionerUnited States Tax Court · 1974
- Community Bank v. CommissionerUnited States Tax Court · 1982