Federal Nat'l Mortg. Asso. v. Commissioner
United States Tax Court
P exchanged interests in pools of mortgage loans it owned for interests in pools of mortgage loans owned by unrelated third parties. Held, P realized recognizable losses on the exchanges. Secs. 165, 1001, I.R.C. 1954. P purchased mortgage loans that had been made by unrelated lenders. The proceeds of the mortgage loans were used, in part, to repay other mortgage loans that P owned.
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P exchanged interests in pools of mortgage loans it owned for interests in pools of mortgage loans owned by unrelated third parties. Held, P realized recognizable losses on the exchanges. Secs. 165, 1001, I.R.C. 1954. P purchased mortgage loans that had been made by unrelated lenders. The proceeds of the mortgage loans were used, in part, to repay other mortgage loans that P owned. Held, P did not exchange the mortgage loans that had been repaid for the mortgage loans it purchased. Held, further, P realized taxable gain when its bases in the mortgage loans that were repaid were less than the…
1Opinion of the Court
KORNER, Judge:
Respondent determined deficiencies in petitioner’s Federal corporate income tax as follows:
Year Deficiency
1971. $147,902
1973 . 9,558,360
1977 . 3,764,520
1979 . 10,948,154
In addition to contesting these determinations, petitioner has requested that this Court find overpayments as follows:
Year Overpayment
1977 . $93,185,818
1979 . 46,631,003
After concessions, the issues for decision are: (1) Whether petitioner realized recognizable losses in 1980 and 1981 when it exchanged interests in pools of mortgage loans, and (2) whether petitioner realized recognizable gains or losses in 1981…
2Cases cited20 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Richard M. Boe and Mary Lots Boe v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- n.sidney Nyhus v. Travel Management CorporationCourt of Appeals for the D.C. Circuit · 1972
- Bolger v. CommissionerUnited States Tax Court · 1973
- Commissioner of Internal Revenue v. Seaboard Finance Company, Seaboard Finance Company, Cross v. Commissioner of Internal Revenue, CrossCourt of Appeals for the Ninth Circuit · 1966
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3Cited by16 opinions
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- Federal National Mortgage Association, Appellant/cross-Appellee v. Commissioner of Internal Revenue, Appellee/cross-AppellantCourt of Appeals for the D.C. Circuit · 1990
- Cottage Savings Association v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1990
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