Hill v. Commissioner
United States Board of Tax Appeals
Taxpayer and cotenant were the owners of a parcel of real estate in the State of Michigan which they had mortgaged to secure funds to pay for the land. In 1934 taxpayer and his cotenant were delinquent in their payments and the mortgage was foreclosed.
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Taxpayer and cotenant were the owners of a parcel of real estate in the State of Michigan which they had mortgaged to secure funds to pay for the land. In 1934 taxpayer and his cotenant were delinquent in their payments and the mortgage was foreclosed. At the sheriff's sale the property was purchased by the owners of the mortgage for an amount which equaled the unpaid mortgage indebtedness, interest, taxes, and costs and the purchasers received a sheriff's deed for the property. Several months later, in the same year, the taxpayer and his wife executed a quitclaim deed to the purchasers at…
1Opinion of the Court
*378OPINION.
Black:
The loss which the taxpayer deducted on his income tax return for the year 1934 was $10,748.48. The Commissioner in his determination of the deficiency allowed $3,045.58 of this loss as a capital loss under section 117 (a) of the Revenue Act of 1934. The Commissioner in his deficiency notice stated as follows:
A deduction of $10,748.48 claimed on your original return, representing loss resulting from your surrender of property to the mortgagee on a quit claim deed, has been disallowed and a capital net loss of $3,046.58, (30% of $10,151.94, revised loss claimed on amended…
2Cases cited4 opinions
- Gage v. SanbornMichigan Supreme Court · 1895
- McWilliams v. Detroit Central Mills Co.Michigan Supreme Court · 1875
- McCreery v. RoffMichigan Supreme Court · 1915
- Moore v. SmithMichigan Supreme Court · 1893
3Cited by5 opinions
- Helvering v. Nebraska Bridge Supply & Lumber Co.Court of Appeals for the Eighth Circuit · 1940
- Securities Mortg. Co. v. CommissionerUnited States Tax Court · 1972
- Commissioner v. HillCourt of Appeals for the Sixth Circuit · 1941
- Hill v. CommissionerUnited States Board of Tax Appeals · 1939
- Securities Mortg. Co. v. CommissionerUnited States Tax Court · 1972