Manomet Cranberry Co. v. Commissioner
United States Board of Tax Appeals
A taxpayer sold property for $139,500, receiving $45,100 in cash and a mortgage for $94,400. In a subsequent taxably year it foreclosed the mortgage, bidding in the property for the amount of principal and interest secured and costs, and applied its lien in payment of the price. Held, that, except to the extent of the interest and costs realized through application to the purchase price, the taxpayer derived no taxable gain in the year of reacquisition.
1Opinion of the Court
*707OPINION.
Ivins:
The only question at issue in this appeal is whether the taxpayer should be regarded as having received taxable income as the result of the reacquisition of the property mentioned in the findings at the foreclosure sale in 1919.
The dispute arises out of the application by the Commissioner of article 46 of Regulations 45 to a case in which we do not consider it applicable. The article deals with sales of real estate in which there is a substantial initial payment, deferred payments being secured by mortgage, the obligations for deferred payments being regarded as equivalent to…
2Cited by10 opinions
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- Missouri State Life Ins. Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Commissioner of Internal Revenue v. Sol Minzer and Adele MinzerCourt of Appeals for the Fifth Circuit · 1960
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