Penn Athletic Club Bldg. v. Commissioner
United States Tax Court
The petitioner, mortgagee-trustee for bondholders, after default and pursuant to a remedy provided in the mortgage, giving it a right to demand and receive a conveyance of the property and lease the same and apply proceeds upon the mortgage and expenses, gave such notice and received a deed to the property from the owner containing the usual expressions of absolute conveyance, but providing that the mortgage should continue in effect and title not merge with the mortgage.
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The petitioner, mortgagee-trustee for bondholders, after default and pursuant to a remedy provided in the mortgage, giving it a right to demand and receive a conveyance of the property and lease the same and apply proceeds upon the mortgage and expenses, gave such notice and received a deed to the property from the owner containing the usual expressions of absolute conveyance, but providing that the mortgage should continue in effect and title not merge with the mortgage. The debt was released. The parties did not intend the conveyance as absolute. The conveyance was necessary in order to…
1Opinion of the Court
OPINION.
Disney, Judge:
The primary issue relates to the rentals realized from the Penn Athletic Club Building during the taxable years. The respondent contends that as a result of the deed executed by the club on January 21, 1942, petitioner became the absolute owner in fee of the club building and should have included the rentals in its gross income; but the deficiency notice as to 1942 disallowed the deduction for taxes paid, taken in the first return filed. Petitioner contends that the rentals are not includible in its gross income because, under paragraph 14 of the supplemental mortgage…
2Cases cited15 opinions
- Freuler v. HelveringSupreme Court of the United States · 1934
- Helvering v. F. & R. Lazarus & Co.Supreme Court of the United States · 1939
- Peugh v. DavisSupreme Court of the United States · 1878
- Mahoney v. BostwickCalifornia Supreme Court · 1892
- Bell Silver & Copper Mining Co. v. First National BankSupreme Court of the United States · 1895
10 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Cox v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1949
- Commissioner of Int. Rev. v. Penn Athletic Club Bldg.Court of Appeals for the Third Circuit · 1949
- Murray v. CommissionerUnited States Tax Court · 1954
- Murray v. CommissionerUnited States Tax Court · 1954
- Penn Athletic Club Bldg. v. CommissionerUnited States Tax Court · 1948