Richard D. Frazier and Yvonne Frazier v. Commissioner

111 T.C. No. 11

UNITED STATES TAX COURT RICHARD D. FRAZIER AND YVONNE FRAZIER, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 3343-96. Filed September 22, 1998. Ps owned investment real property subject to a recourse mortgage. Upon default, the property was acquired by the lender at a foreclosure sale. At the foreclosure sale, the lender bid in an amount for the property which was in excess of the property's fair market value. R determined that the "amount realized" by Ps at the foreclosure sale was the amount bid in by the lender, regardless of fair market value. Held:…