Greisler v. Commissioner
United States Board of Tax Appeals
Petitioners owned for more than two years property which they had purchased subject to a first mortgage which petitioners did not assume when they purchased the property in 1927. In 1934 the owner of the first mortgage foreclosed and the property was sold at sheriff's sale, without equity of redemption, for an amount less than the first mortgage, and petitioners received nothing by virtue of the sale and incurred certain losses the amounts of which are conceded.
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Petitioners owned for more than two years property which they had purchased subject to a first mortgage which petitioners did not assume when they purchased the property in 1927. In 1934 the owner of the first mortgage foreclosed and the property was sold at sheriff's sale, without equity of redemption, for an amount less than the first mortgage, and petitioners received nothing by virtue of the sale and incurred certain losses the amounts of which are conceded. Held, that such losses are ordinary losses and deductible in their entirety under section 23(e)(2), Revenue Act of 1934, and are not…
1Opinion of the Court
*543OPINION.
Black:
In Docket No. 89403 the Commissioner determined a deficiency of $611.47 for the year 1934 against Sol Greisler and his wife, and in Docket No. 89404 he determined a deficiency of $725.42 for the year 1934 against Bernard,Greisler.
The sole issue in each proceeding is whether a loss incurred by petitioners on the foreclosure of a mortgage on property which they owned was an ordinary loss and allowable as a deduction to the full extent thereof as provided in section 23 (e) (2) of the Revenue Act of 1934, or whether such loss was a capital loss and limited to $2,000 as provided by…
2Cases cited2 opinions
- Metropolitan Bank v. St. Louis Dispatch Co.Supreme Court of the United States · 1893
- Hulin v. VeatchOregon Supreme Court · 1934
3Cited by7 opinions
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- Capital One Financial Corporation and Subsidiaries v. CommissionerUnited States Tax Court · 2009
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