Woodsam Associates, Inc. v. Commissioner
United States Tax Court
Various mortgages were placed on a commercial property in the years 1922 through 1931 by petitioner or its transferor. Petitioner acquired the property in a tax free exchange. In 1943 the mortgage liability was $ 381,000. The mortgagee then foreclosed the mortgage and bought the property at the foreclosure sale for a nominal sum.
Read the full summary
Various mortgages were placed on a commercial property in the years 1922 through 1931 by petitioner or its transferor. Petitioner acquired the property in a tax free exchange. In 1943 the mortgage liability was $ 381,000. The mortgagee then foreclosed the mortgage and bought the property at the foreclosure sale for a nominal sum. Held: The foreclosure was a disposition of the property and the amount realized was the amount of the mortgage, resulting in a gain to petitioner of the difference between the mortgage and petitioner's adjusted basis.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
Petitioner or its transferor placed various mortgages on the property in the years 1922 to 1931. Petitioner acquired the property in a tax free exchange. In 1943 the mortgage liability was $381,000. The mortgagee then foreclosed the mortgage and bought the property at the foreclosure sale for a nominal sum. The original cost of the property to petitioner’s transferor in 1922 was $296,400. From 1922 to 1943 deductions for depreciation attributable to the building on the property were taken and allowed at the rate of $3,000 per year, or a total of $63,000. Capital…
2Cases cited4 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Lutz & Schramm Co. v. CommissionerUnited States Tax Court · 1943
- Mendham Corp. v. CommissionerUnited States Tax Court · 1947
- R. O'Dell & Sons Co. v. CommissionerUnited States Tax Court · 1947
3Cited by31 opinions
- Smith v. CommissionerUnited States Tax Court · 1982
- Danenberg v. CommissionerUnited States Tax Court · 1979
- Edgar v. CommissionerUnited States Tax Court · 1971
- Freeland v. CommissionerUnited States Tax Court · 1980
- Estate of Delman v. CommissionerUnited States Tax Court · 1979
26 more not listed; retrieve them via the Exa API.