Nutter v. Commissioner
United States Tax Court
Cancellation of petitioner's indebtedness, representing money borrowed to purchase certain pledged securities, in return for transfer of the securities to pledgee, held not to result in taxable gain, notwithstanding that indebtedness exceeded adjusted basis of securities.
1Opinion of the Court
OPINION.
Oppee, Jvdge:
Petitioner borrowed the major part of the purchase price of certain securities. Some of these became worthless prior to the taxable year, leaving in the hands of the creditor, as collateral, securities with a basis to petitioner of less than the amount remaining due on the loan. The question is whether petitioner realized gain, suffered a deductible loss, or did neither, when in the tax year he settled with his creditor by surrendering title to the securities and delivering to it $1,000 in cash.
As in Lutz & Schramm Co., 1 T. C. 682, 689, “ * * * the question is not…
Also in this document: Dissent.
2Cases cited6 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Eckert v. BurnetSupreme Court of the United States · 1931
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Helvering v. American Chicle Co.Supreme Court of the United States · 1934
- Lutz & Schramm Co. v. CommissionerUnited States Tax Court · 1943
1 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Millar v. CommissionerUnited States Tax Court · 1977
- Mendham Corp. v. CommissionerUnited States Tax Court · 1947
- Edwards v. CommissionerUnited States Tax Court · 1952
- Mendham Corp. v. CommissionerUnited States Tax Court · 1947
- Millar v. CommissionerUnited States Tax Court · 1977
1 more not listed; retrieve them via the Exa API.