Easson v. Commissioner
United States Tax Court
1. Individual petitioner transferred property subject to a mortgage to a controlled corporation. Held, that portion of the gain equal to excess of the mortgage over his adjusted basis on the transferred property does not qualify for nonrecognition under section 112(b)(5), I.R.C. 1939. 2. Remainder of the gain qualifies for nonrecognition under section 112(b)(5) and (k). 3. Portion of his gain to be treated as ordinary income under section 117(o) determined. 4. The…
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1. Individual petitioner transferred property subject to a mortgage to a controlled corporation. Held, that portion of the gain equal to excess of the mortgage over his adjusted basis on the transferred property does not qualify for nonrecognition under section 112(b)(5), I.R.C. 1939. 2. Remainder of the gain qualifies for nonrecognition under section 112(b)(5) and (k). 3. Portion of his gain to be treated as ordinary income under section 117(o) determined. 4. The recognition of gain to the individual petitioner on the exchange of the property for all the capital stock of a controlled…
1Opinion of the Court
FORRESTER, Judge:
The Commissioner has determined deficiencies in the income tax liability of Jack L. Easson, June B. Easson, and the Envoy Apartments as follows:
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The issues for decision are:
1. Whether the exchange of an apartment house subject to a mortgage for all the capital stock of a newly organized corporation was within the nonrecognition provisions of sections 112(b) (5) and 112(k) of the Internal Revenue Code of 1939.
2. Whether, if gain is recognized, such gain will be treated as ordinary income under section 117 (o) of the Internal Revenue Code of 1939.
3. The tax basis…
Also in this document: Concurrence.
2Cases cited20 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Church of the Holy Trinity v. United StatesSupreme Court of the United States · 1892
- Crane v. CommissionerSupreme Court of the United States · 1947
- Haggar Co. v. Helvering, Com'r of Internal RevenueSupreme Court of the United States · 1940
15 more not listed; retrieve them via the Exa API.
3Cited by35 opinions
- Furman v. CommissionerUnited States Tax Court · 1966
- Maher v. CommissionerUnited States Tax Court · 1970
- Kniffen v. CommissionerUnited States Tax Court · 1962
- Focht v. CommissionerUnited States Tax Court · 1977
- Estate of Stoll v. CommissionerUnited States Tax Court · 1962
30 more not listed; retrieve them via the Exa API.