Queensboro Corp. v. Commissioner
United States Board of Tax Appeals
1. Petitioner is held to be a dealer in real estate holding certain property for sale to customers in the ordinary course of its business. Thus, its loss on that property is an ordinary loss. 2. Petitioner capitalized interest on the original mortgage and later mortgages as well as taxes.
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1. Petitioner is held to be a dealer in real estate holding certain property for sale to customers in the ordinary course of its business. Thus, its loss on that property is an ordinary loss. 2. Petitioner capitalized interest on the original mortgage and later mortgages as well as taxes. Held, only the interest on the amount of the original mortgage is a "carrying charge" which section 113(b)(1)(A) of the Revenue Act of 1934 permits a taxpayer to capitalize; held, further, that the basis of the property is reduced by the amount of the depreciation "allowable", although deducted in a lesser…
1Opinion of the Court
*1219OPINION.
Him:
The first issue to be determined is whether the loss sustained by the foreclosure sale was an ordinary loss or a capital loss within the meaning of section 117, Revenue Act of 1934, and the deduction limited to $2,000 by section 117 (d) (hereinafter all sections not otherwise specified are from the Revenue Act of 1934). It is settled law that a foreclosure sale is a sale within the meaning of that section. Electro-Chemical Engraving Co. v. Commissioner, 311 U. S. 513; Helvering v. Hammel, 311 U. S. 504; Jacob Abelson, 44 B. T. A. 98. It is also true that the property held for sale…
2Cases cited2 opinions
- Helvering v. HammelSupreme Court of the United States · 1941
- Electro-Chemical Engraving Co. v. CommissionerSupreme Court of the United States · 1941
3Cited by6 opinions
- Ambassador, Inc. v. CommissionerUnited States Tax Court · 1952
- Factoria Land Co. v. CommissionerUnited States Tax Court · 1947
- Kentucky Natural Gas Corp. v. CommissionerUnited States Board of Tax Appeals · 1942
- Nevin v. CommissionerUnited States Tax Court · 1965
- Queensboro Corp. v. CommissionerUnited States Board of Tax Appeals · 1942
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