Crane v. Commissioner
United States Tax Court
Under the will of her husband petitioner acquired improved real property consisting of an apartment house and the land upon which it was located, which at the date of his death was subject to a mortgage in an amount equal to the fair market value of the property at that date. Petitioner never assumed the mortgage debt. She sold the property and received $ 2,500 in cash from the vendee, who took title subject to the mortgage.
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Under the will of her husband petitioner acquired improved real property consisting of an apartment house and the land upon which it was located, which at the date of his death was subject to a mortgage in an amount equal to the fair market value of the property at that date. Petitioner never assumed the mortgage debt. She sold the property and received $ 2,500 in cash from the vendee, who took title subject to the mortgage. Held: (1) The amount of the mortgage is not part of the "amount realized" by the petitioner from the sale and the only amount realized by her was $ 2,500. (2) The basis…
1Opinion of the Court
OPINION.
Tyson, Judge:
The'question for determination is the amount of the petitioner’s gain or loss from the sale of the property which she had acquired by devise. The applicable statutory provisions found in the Revenue Act of 1938 are set forth in the margin.1
The respondent found the amount realized by petitioner on the sale to be $257,500 and the basis to be $262,042.50. The amount realized is composed of the $255,000 principal due on the mortgage at the time of the sale and the $2,500 net cash received from the purchaser, as conceded by respondent at the hearing and on brief; and the basis…
2Cases cited4 opinions
- Brewster v. GageSupreme Court of the United States · 1930
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Woolford Realty Co. v. RoseSupreme Court of the United States · 1932
- United States v. HendlerSupreme Court of the United States · 1938
3Cited by8 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Hilpert v. CommissionerUnited States Tax Court · 1944
- Commissioner of Internal Revenue v. CraneCourt of Appeals for the Second Circuit · 1946
- Commissioner of Internal Revenue v. CraneCourt of Appeals for the Second Circuit · 1946
- Crane v. CommissionerUnited States Tax Court · 1944
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