Harbor Bldg. Trust v. Commissioner
United States Tax Court
1. H corporation owned land and a building on which it placed first, second, and third mortgages. After default on the third mortgage, it was foreclosed and the property was sold in April 1928. It was bought and operated by nominees of the third mortgagee. In August 1930, after default on the first mortgage, the trustees thereunder entered the property and took over its operation preliminary to effecting foreclosure.
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1. H corporation owned land and a building on which it placed first, second, and third mortgages. After default on the third mortgage, it was foreclosed and the property was sold in April 1928. It was bought and operated by nominees of the third mortgagee. In August 1930, after default on the first mortgage, the trustees thereunder entered the property and took over its operation preliminary to effecting foreclosure. The property continued to be operated by trustees under the first mortgage until January 1939 when it was sold to petitioner pursuant to a court decree foreclosing the first…
1Opinion of the Court
opinion. .
Raum, Judge:
1. Petitioner acquired the so-called Harbor property in 1939, and the first issue involves its basis for depreciation. Normally, depreciation deductions are based upon cost. Sections 113,. 114, Internal Revenue Code. However, petitioner seeks to use a considerably higher basis, namely, the basis which the property had in the hands of Harbor Trust Incorporated, and its claim is founded on the contention that it acquired the property in a transaction governed by section 112 (b (10) of the Code.1
If section 112 (b) (10) were applicable, then, pursuant to section 113 (a)…
2Cases cited14 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- United States v. AndersonSupreme Court of the United States · 1926
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Continental Tie & Lumber Co. v. United StatesSupreme Court of the United States · 1932
- Helvering v. Cement Investors, Inc.Supreme Court of the United States · 1942
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3Cited by1 opinion
- Harbor Bldg. Trust v. CommissionerUnited States Tax Court · 1951