Allan v. Commissioner
United States Tax Court
In 1971, a partnership purchased residential property subject to a mortgage insured by the Department of Housing and Urban Development (HUD). The partnership took deductions for interest on the mortgage and real estate taxes on an accrual basis. In 1974 when income from the property was insufficient to cover the mortgage payments, HUD acquired the mortgage. HUD paid real estate taxes as they came due and charged the partnership for interest payments due on the mortgage.
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In 1971, a partnership purchased residential property subject to a mortgage insured by the Department of Housing and Urban Development (HUD). The partnership took deductions for interest on the mortgage and real estate taxes on an accrual basis. In 1974 when income from the property was insufficient to cover the mortgage payments, HUD acquired the mortgage. HUD paid real estate taxes as they came due and charged the partnership for interest payments due on the mortgage. Pursuant to the mortgage agreement, HUD added these advances to the mortgage principal as they were made and charged…
1Opinion of the Court
CLAPP, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes for the taxable year 1978 as follows:
Petitioner Deficiency
James A. Allan and Eileen M. Allan. $82,991
Dennis M. Evavold and Joanne L. Evavold. 1,157
Petitioner Deficiency
Lowell J. Gordon. $2,487
Donald J. Hamm and Beverly J. Hamm. 2,304
William D.C. Mattison and Barbara A. Mattison. 17,824
Bruce M. Nelson and Doris A. Nelson. 9,286
Robert F. Osterbauer. 41,353
Daniel R. Vaughan and Roberta E. Vaughan. 419
The issues for decision are: (1) What amount, if any, of petitioners’ distributive share of partnership income…
2Cases cited15 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Commissioner v. TuftsSupreme Court of the United States · 1983
- Hillsboro National Bank v. CommissionerSupreme Court of the United States · 1983
- Commissioner of Internal Revenue v. D. B. AndersCourt of Appeals for the Tenth Circuit · 1969
- Freeland v. CommissionerUnited States Tax Court · 1980
10 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Gehl v. CommissionerUnited States Tax Court · 1994
- Aizawa v. CommissionerUnited States Tax Court · 1992
- Allan v. CommissionerCourt of Appeals for the Eighth Circuit · 1988
- James A. Allan v. Commissioner Of Internal RevenueCourt of Appeals for the Eighth Circuit · 1988
- Spinella v. DirectorNew Jersey Tax Court · 1993
15 more not listed; retrieve them via the Exa API.