Richmond Hill Sav. Bank v. Commissioner
United States Tax Court
Petitioners, mutual savings banks, made loans secured by real estate. Pursuant to the mortgage instruments and State law, petitioners required mortgagors to advance escrow deposits for the payment of real estate taxes, special assessments, and insurance premiums as they came due, which were received by petitioners and commingled with their general funds.
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Petitioners, mutual savings banks, made loans secured by real estate. Pursuant to the mortgage instruments and State law, petitioners required mortgagors to advance escrow deposits for the payment of real estate taxes, special assessments, and insurance premiums as they came due, which were received by petitioners and commingled with their general funds. Petitioners computed the 3-percent additions to their reserves for bad debts under sec. 593(b)(3), I.R.C. 1954, based on their "qualifying real property loans," unreduced by the amount of mortgagor escrow deposits. Sec. 593(e) requires that…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in the Federal income tax of petitioner Richmond Hill Savings Bank for the calendar year 1965 in the amount of $18,716.93, and petitioner College Point Savings Bank for the calendar year 1966 in the amount of $15,046.57.
The issue for decision is whether in determining the reserve for bad debts for the years in issue under section 593 (b) (3), I.R.C. 1954,1 petitioners’ stated “qualifying real property loans,” as defined in section 593(e) must be reduced by the amount of mortgagors’ escrow deposits held by petitioners for the payment of taxes and…
2Cases cited8 opinions
- Barson v. . MulliganNew York Court of Appeals · 1908
- First Sav. & Loan Asso. v. CommissionerUnited States Tax Court · 1963
- In Matter of SimonDistrict Court, E.D. New York · 1958
- Valerio v. College Point Savings BankNew York Supreme Court · 1965
- Cassedy v. Johnstown BankAppellate Division of the Supreme Court of the State of New York · 1936
3 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Richmond Hill Sav. Bank v. CommissionerUnited States Tax Court · 1972