Freeland v. Commissioner
United States Tax Court
Petitioner bought real estate in California for $ 50,000, paying the seller $ 9,000 cash and giving her a purchase-money mortgage in the amount of $ 41,000. Under California law, there is no personal liability on the mortgagor in a purchase-money mortgage. Petitioner took no deductions for depreciation while he held the property.
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Petitioner bought real estate in California for $ 50,000, paying the seller $ 9,000 cash and giving her a purchase-money mortgage in the amount of $ 41,000. Under California law, there is no personal liability on the mortgagor in a purchase-money mortgage. Petitioner took no deductions for depreciation while he held the property. Subsequently, when the fair market value of the property dropped to $ 27,000, and the unpaid balance on the mortgage note was still $ 41,000, petitioner voluntarily reconveyed the property to the mortgagee for no monetary consideration. Held, the reconveyance…
1Opinion of the Court
Eugene L. and Mary R. Freeland, Petitioners v. Commissioner of Internal Revenue, Respondent
Freeland v. Commissioner
Docket No. 969-78
United States Tax Court
74 T.C. 970; 1980 U.S. Tax Ct. LEXIS 86; 74 T.C. No. 70;
August 5, 1980, Filed
Decision will be entered for the respondent.
Petitioner bought real estate in California for $ 50,000, paying the seller $ 9,000 cash and giving her a purchase-money mortgage in the amount of $ 41,000. Under California law, there is no personal liability on the mortgagor in a purchase-money mortgage. Petitioner took no deductions for depreciation while he held the…
2Cases cited37 opinions
- Helvering v. HallockSupreme Court of the United States · 1940
- Crane v. CommissionerSupreme Court of the United States · 1947
- Helvering v. HammelSupreme Court of the United States · 1941
- Gerhard v. StephensCalifornia Supreme Court · 1968
- Johnson v. CommissionerUnited States Tax Court · 1973
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