Hilpert v. Commissioner
United States Tax Court
1. Sale in 1940 of petitioners' property for cash consideration in addition to amount for which it could be redeemed pursuant to state court decree in 1939 holding 1931 transaction, then regarded for Federal tax purposes as a sale, to be a mortgage and not a sale, held to result in capital gain to the extent of excess of cash and redemption price over adjusted basis. 2. Credit given petitioners in taxable year pursuant to decree, representing portion of excess of income from…
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1. Sale in 1940 of petitioners' property for cash consideration in addition to amount for which it could be redeemed pursuant to state court decree in 1939 holding 1931 transaction, then regarded for Federal tax purposes as a sale, to be a mortgage and not a sale, held to result in capital gain to the extent of excess of cash and redemption price over adjusted basis. 2. Credit given petitioners in taxable year pursuant to decree, representing portion of excess of income from property received by mortgagee between 1931 and 1940 over amount due him as interest, held taxable as ordinary income.
1Opinion of the Court
OPINION.
Oppee, Judge:
By these proceedings petitioners contest deficiencies in income tax for the year 1940 as follows:
Anna I. Hilpert, Docket No. 519_$1, 057., 71
Charles R. Hilpert and Minnie P. Hilpert, Docket No. 520— 3, 663.04
The question involved is the proper treatment for tax purposes of a transaction involving real property sold by petitioners in the taxable year upon the successful termination of litigation instituted by petitioners in a state court to have a deed absolute on its face declared a mortgage.
The facts are submitted in the form of a stipulation by the parties. As so…
2Cases cited6 opinions
- Blair v. CommissionerSupreme Court of the United States · 1937
- Freuler v. HelveringSupreme Court of the United States · 1934
- United States v. StewartSupreme Court of the United States · 1940
- Hort v. CommissionerSupreme Court of the United States · 1941
- Markell v. HilpertSupreme Court of Florida · 1939
1 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Massaglia v. CommissionerUnited States Tax Court · 1959
- Chilhowee Mills, Inc. v. CommissionerUnited States Tax Court · 1945
- Murray v. CommissionerUnited States Tax Court · 1954
- Affiliated Capital Corp. v. CommissionerUnited States Tax Court · 1987
- Affiliated Capital Corp. v. CommissionerUnited States Tax Court · 1987
10 more not listed; retrieve them via the Exa API.