Spratt v. Commissioner
United States Board of Tax Appeals
1. Title to real estate (subject to a mortgage) was acquired by trustees to be held for the benefit of the owners of the preferred and common shares issued by the trust. Petitioner paid the entire purchase price of the real estate and received all of the 7 percent cumulative preferred shares and 45 percent of the common shares.
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1. Title to real estate (subject to a mortgage) was acquired by trustees to be held for the benefit of the owners of the preferred and common shares issued by the trust. Petitioner paid the entire purchase price of the real estate and received all of the 7 percent cumulative preferred shares and 45 percent of the common shares. Upon default in the payment of dividends, the trustees, as provided in the trust instrument, deeded the property to petitioner as the owner of all the preferred shares. Held, under the evidence and the terms of the trust instrument, that there was a distribution in…
1Opinion of the Court
*507OPINION.
Mellott :
The issues as set out at the beginning will be considered in the order stated.
Issue No. 1.
Petitioner contends that the preferred shares or trust certificates of Building Number One Trust were legally and in effect a mortgage, and that, following well recognized principles, upon foreclosure (or in lieu thereof a deed from the mortgagor to the mortgagee) he is entitled to deduct the loss sustained ($10,757.17) in computing his net income for 1936; that Minnesota law clearly holds such a trust to be a mortgage; that the law as enunciated by the courts of Minnesota is controlling…
2Cases cited7 opinions
- Morrissey v. CommissionerSupreme Court of the United States · 1935
- Helvering v. Coleman-Gilbert AssociatesSupreme Court of the United States · 1935
- Swanson v. CommissionerSupreme Court of the United States · 1935
- Helvering v. CombsSupreme Court of the United States · 1935
- Myrick v. CoursalleSupreme Court of Minnesota · 1884
2 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Cornwall v. CommissionerUnited States Tax Court · 1967
- Watson v. FahsDistrict Court, S.D. Florida · 1954
- Bryant v. CommissionerUnited States Tax Court · 1982
- Cornwall v. CommissionerUnited States Tax Court · 1967
- Emmons v. CommissionerUnited States Tax Court · 1943
6 more not listed; retrieve them via the Exa API.