Gehl v. Commissioner
United States Tax Court
Ps transferred property to a creditor in satisfaction of a recourse indebtedness. Ps were insolvent both before and after the transfer.
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Ps transferred property to a creditor in satisfaction of a recourse indebtedness. Ps were insolvent both before and after the transfer. R conceded that the excess of the amount of the indebtedness over the fair market value of the property constituted income from discharge of indebtedness excludable under sec. 108, I.R.C.Held, the excess of the fair market value of the property over basis constituted an amount realized under sec. 1001, I.R.C., and therefore taxable gain under sec. 61(a)(3), I.R.C., rather than income from discharge of indebtedness under sec. 61(a)(12), I.R.C., excludable…
1Opinion of the Court
OPINION
TANNENWALD, Judge:
Respondent determined deficiencies in petitioners’ Federal income tax for the years 1988 and 1989 in the amounts of $6,887.00 and $13,643.00, respectively. The sole issue is the proper treatment of the excess of the fair market value over basis of property, transferred by petitioners to a creditor in partial satisfaction of a debt.
All the facts have been stipulated and are found accordingly. Petitioners resided in Cascade, Iowa, at the time they filed their petition.
As of December 30, 1988, Production Credit Association (Production) held a recourse note from…
2Cases cited18 opinions
- Commissioner v. TuftsSupreme Court of the United States · 1983
- Hicks v. CommissionerUnited States Tax Court · 1966
- Danenberg v. CommissionerUnited States Tax Court · 1979
- Freeland v. CommissionerUnited States Tax Court · 1980
- Dallas T. & T. Warehouse Co. v. Commissioner of Int. Rev.Court of Appeals for the Fifth Circuit · 1934
13 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Frazier v. CommissionerUnited States Tax Court · 1998
- In Re EicholzDistrict Court, W.D. Washington · 2004
- Marcaccio v. CommissionerUnited States Tax Court · 1995
- Bowden v. CommissionerUnited States Tax Court · 1996
- Calloway v. CommissionerUnited States Tax Court · 2010
6 more not listed; retrieve them via the Exa API.