Community Bank v. Commissioner
United States Tax Court
Petitioner, a commercial bank, held mortgages on certain properties. Petitioner purchased these properties at nonjudicial foreclosure sales conducted in accordance with State law. Petitioner determined the fair market value of each of the properties to be the bid price.
Read the full summary
Petitioner, a commercial bank, held mortgages on certain properties. Petitioner purchased these properties at nonjudicial foreclosure sales conducted in accordance with State law. Petitioner determined the fair market value of each of the properties to be the bid price. Held, for purposes of determining gain or loss under sec. 1.166-6, Income Tax Regs., the presumption in the regulation that fair market value is equal to the bid price is rebuttable by clear and convincing evidence, regardless of any contrary provisions of State law.
1Opinion of the Court
OPINION
Tannenwald, Chief Judge:
This case was reassigned to Special Trial Judge John J. Pajak for consideration and ruling on petitioner’s motion for summary judgment.* After a review of the record, we agree with and adopt his opinion which is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
Pajak, Special Trial Judge:
Petitioner is a commercial bank with its principal office located in Huntington Park, Calif. During the taxable years in question, petitioner purchased four properties on which it held mortgages at nonjudicial foreclosure sales. In each case, the sale was conducted in full…
2Cases cited6 opinions
- Lyeth v. HoeySupreme Court of the United States · 1938
- Helvering v. Midland Mutual Life InsuranceSupreme Court of the United States · 1937
- Hadley Falls Trust Co. v. United StatesCourt of Appeals for the First Circuit · 1940
- Community Bank v. CommissionerUnited States Tax Court · 1974
- Nichols v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1944
1 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Frazier v. CommissionerUnited States Tax Court · 1998
- Carlson v. CommissionerUnited States Tax Court · 2001
- Community Bank v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1987
- Marcaccio v. CommissionerUnited States Tax Court · 1995
- Pabst Brewing Co. v. CommissionerUnited States Tax Court · 1995
6 more not listed; retrieve them via the Exa API.