Frazier v. Commissioner
United States Tax Court
Ps owned investment real property subject to a recourse mortgage. Upon default, the property was acquired by the lender at a foreclosure sale. At the foreclosure sale, the lender bid in an amount for the property which was in excess of the property's fair market value. R determined that the "amount realized" by Ps at the foreclosure sale was the amount bid in by the lender, regardless of fair market value.
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Ps owned investment real property subject to a recourse mortgage. Upon default, the property was acquired by the lender at a foreclosure sale. At the foreclosure sale, the lender bid in an amount for the property which was in excess of the property's fair market value. R determined that the "amount realized" by Ps at the foreclosure sale was the amount bid in by the lender, regardless of fair market value. HELD: P's "amount realized" at the foreclosure sale is the property's fair market value. HELD, FURTHER: Bifurcated analysis used to determine income tax consequences of "amount realized"…
1Opinion of the Court
RICHARD D. FRAZIER AND YVONNE FRAZIER, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Frazier v. Commissioner
Tax Ct. Dkt. No. 3343-96
United States Tax Court
111 T.C. 243; 1998 U.S. Tax Ct. LEXIS 46; 111 T.C. No. 11;
September 22, 1998, Filed
Decision will be entered under Rule 155.
Ps owned investment real property subject to a recourse mortgage. Upon default, the property was acquired by the lender at a foreclosure sale. At the foreclosure sale, the lender bid in an amount for the property which was in excess of the property's fair market value. R determined that the "amount…
2Cases cited37 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Knetsch v. United StatesSupreme Court of the United States · 1960
- United States v. CartwrightSupreme Court of the United States · 1973
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Commissioner v. TuftsSupreme Court of the United States · 1983
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