Pietz v. Commissioner
United States Tax Court
Petitioners and the Grants were equal partners in a partnership formed to build and operate a motel. The venture was unsuccessful and the motel and furnishings were sold. The purchaser assumed the mortgage on the property, paid $ 60,000 cash which was applied on a bank loan, and gave a second mortgage on the property to the Grants. This left the partnership with no assets. Petitioners suffered a loss of investment in the partnership upon termination of the partnership.
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Petitioners and the Grants were equal partners in a partnership formed to build and operate a motel. The venture was unsuccessful and the motel and furnishings were sold. The purchaser assumed the mortgage on the property, paid $ 60,000 cash which was applied on a bank loan, and gave a second mortgage on the property to the Grants. This left the partnership with no assets. Petitioners suffered a loss of investment in the partnership upon termination of the partnership. Held, the loss recognized to petitioners was a capital loss.
1Opinion of the Court
DREnnen, Judge:
Respondent determined deficiencies in the Federal income taxes of petitioners for the designated years in the following amounts:
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The cases were consolidated on a joint motion by all of the parties because of their common questions of law and fact. However, prior to trial several issues in dispute between petitioners and respondent were settled through negotiation. As a result of the settled issues, petitioners Irven J. Harter and Margaret H. Harter no longer 'have their tax liability for the years 1965 and 1966 in contention. The remaining matter presented for our…
2Cases cited10 opinions
- Mayerson v. CommissionerUnited States Tax Court · 1966
- Tauber v. CommissionerUnited States Tax Court · 1955
- Standard Oil Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1942
- Refrigeration Engineering Co. v. McKayCourt of Appeals of Washington · 1971
- Stilwell v. CommissionerUnited States Tax Court · 1966
5 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
- Neubecker v. CommissionerUnited States Tax Court · 1975
- La Rue v. CommissionerUnited States Tax Court · 1988
- O'Brien v. CommissionerUnited States Tax Court · 1981
- WIT Equipment Co. v. Director, Virgin Islands Bureau of Internal RevenueDistrict Court, Virgin Islands · 2001
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