Fulton Gold Corp. v. Commissioner
United States Board of Tax Appeals
Where property is purchased subject to a mortgage (not assumed by the purchaser) and the mortgage subsequently satisfied by the purchaser for less than its face amount, upon the sale of the property the basis for determining loss or gain will be the amount paid to satisfy the mortgage plus the amount of the balance of the consideration paid for the property.
1Opinion of the Court
OPINION.
Sea well :
The petitioner, a corporation, in 1920 purchased from the Hopkinson Bergen Co. a piece of improved real estate in New York City for $600,000. There was an outstanding mortgage on the *520property for $450;000 and petitioner received the property subject to the mortgage, payment of which, however, it did- not assume. In consideration of the payment of the mortgage before maturity the holder agreed to accept less than the face amount of the mortgage in satisfaction thereof. Accordingly, in May 1922 the petitioner paid the sum of $407,8,53 in full settlement of the mortgage and…
2Cases cited2 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Helvering v. American Chicle Co.Supreme Court of the United States · 1934
3Cited by8 opinions
- Gershkowitz v. CommissionerUnited States Tax Court · 1987
- Michaels v. CommissionerUnited States Tax Court · 1986
- 2925 Briarpark, Ltd. v. CommissionerCourt of Appeals for the Fifth Circuit · 1999
- Commissioner of Internal Revenue v. Stanley Co. Of AmericaCourt of Appeals for the Second Circuit · 1951
- Parker Props. Joint Venture v. CommissionerUnited States Tax Court · 1996
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