Legal Opinion

Fed. Home Loan Mortg. Corp. v. Comm'r

United States Tax Court

Decided October 30, 2003No. 3941-99; No. 15626-99PublishedCited by 6 opinions

P was originally exempt from Federal income taxation. However, on Jan. 1, 1985, P became subject to taxation under the Deficit Reduction Act of 1984 (DEFRA), Pub. L. 98-369, sec. 177, 98 Stat. 709. P adopted the accrual method of accounting for its first taxable year commencing Jan. 1, 1985. Before that date, P acquired certain mortgages that were in default.

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P was originally exempt from Federal income taxation. However, on Jan. 1, 1985, P became subject to taxation under the Deficit Reduction Act of 1984 (DEFRA), Pub. L. 98-369, sec. 177, 98 Stat. 709. P adopted the accrual method of accounting for its first taxable year commencing Jan. 1, 1985. Before that date, P acquired certain mortgages that were in default. Interest accrued on each of those mortgages from the date of acquisition up to Jan. 1, 1985. At various points after Jan. 1, 1985, P foreclosed the mortgages on the underlying real estate. In computing its gain or loss from the…

1Opinion of the Court

OPINION

Ruwe, Judge:

Respondent determined deficiencies in petitioner’s Federal income taxes in docket No. 3941-99 for 1985 and 1986, as follows:

Year Deficiency

$36,623,695 1 — * CO 00 CR

40,111,127 h-i CO OO Oi

Petitioner claims overpayments of $9,604,085 for 1985 and $12,418,469 for 1986.

Respondent determined deficiencies in petitioner’s Federal income taxes in docket No. 15626-99 for 1987, 1988, 1989, and 1990, as follows:

Year Deficiency

1987 . $26,200,358

1988 . 13,827,654

1989 . 6,225,404

1990 . 23,466,338

Petitioner claims overpayments of $57,775,538 for 1987, $28,434,990 for 1988, $32,577,346…

2Cases cited11 opinions

  1. FPL Group, Inc. v. CommissionerUnited States Tax Court · 2001
  2. Rauenhorst v. Comm'rUnited States Tax Court · 2002
  3. Elec. Arts, Inc. v. Comm'rUnited States Tax Court · 2002
  4. Collin v. CommissionerUnited States Board of Tax Appeals · 1925
  5. Citizens' Acceptance Corporation, a Dissolved Corporation Continued by Statute for Purposes of Suit v. United StatesCourt of Appeals for the Third Circuit · 1972

6 more not listed; retrieve them via the Exa API.

3Cited by6 opinions

  1. Fed. Home Loan Mortg. Corp. v. Comm'rUnited States Tax Court · 2005
  2. Charles E. Bercy, Elaine Bercy, Successor in Interest, and Elaine Bercy v. CommissionerUnited States Tax Court · 2019
  3. Fed. Home Loan Mortg. Corp. v. Comm'rUnited States Tax Court · 2005
  4. Fed. Home Loan Mortg. Corp. v. Comm'rUnited States Tax Court · 2003
  5. Federal Home Loan Mortgage Corporation v. CommissionerUnited States Tax Court · 2005

1 more not listed; retrieve them via the Exa API.

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