Record Realty Co. v. Commissioner
United States Tax Court
Petitioner's only asset, apartment house property, was mortgaged to secure bonds. Petitioner defaulted in the payment of interest on the bonds and principal. The indenture trustee instituted foreclosure proceedings and a state court entered a decree for foreclosure. That decree was permanently stayed by a Federal District Court, which approved a plan of reorganization of petitioner under section 77-B of the Bankruptcy Act.
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Petitioner's only asset, apartment house property, was mortgaged to secure bonds. Petitioner defaulted in the payment of interest on the bonds and principal. The indenture trustee instituted foreclosure proceedings and a state court entered a decree for foreclosure. That decree was permanently stayed by a Federal District Court, which approved a plan of reorganization of petitioner under section 77-B of the Bankruptcy Act. The approved plan of reorganization resulted in extension of the bonds and the mortgage for 10 years and cancellation of part of petitioner's indebtedness for accrued…
1Opinion of the Court
OPINION.
HarRON, Judge-.
The question is whether expenses in the total sum of $10,934.31, which were incurred in preparing and consummating the bondholders’ and debtor’s plan of reorganization and in filing and carrying through petitioner’s voluntary petition for a reorganization under section 77-B of the Bankruptcy Act, as amended, are the type of capital expenses which may be spread over a fixed period and deducted in annual, proportional amounts, over such period. Petitioner contends that, for tax deduction purposes, it is entitled to spread the expenses over the extended period of the bond…
2Cases cited1 opinion
- Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
3Cited by5 opinions
- Bush Terminal Bldgs. Co. v. CommissionerUnited States Tax Court · 1946
- John J. Round, Jr., Executors v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1964
- In Re Placid Oil Co.United States Bankruptcy Court, N.D. Texas · 1990
- Bush Terminal Bldgs. Co. v. CommissionerUnited States Tax Court · 1946
- Record Realty Co. v. CommissionerUnited States Tax Court · 1946