Hutchison v. Commissioner
United States Tax Court
Petitioner sold an apartment complex in 1971 pursuant to a "wrap-around" mortgage arrangement and properly elected to report the gain on the sale under section 453. Affter the purchaser was delinquent in making payments on his mortgage debt to petitioner-seller, a 1975 court approved settlement was executed between the petitioner and the purchaser modifying the 1971 sales contract.
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Petitioner sold an apartment complex in 1971 pursuant to a "wrap-around" mortgage arrangement and properly elected to report the gain on the sale under section 453. Affter the purchaser was delinquent in making payments on his mortgage debt to petitioner-seller, a 1975 court approved settlement was executed between the petitioner and the purchaser modifying the 1971 sales contract. Held, facts and circumstances surrounding the settlement reveal that in 1975 the purchaser took the apartment complex subject to a mortgage held by petitioner's mortgagee. Thus, for purposes of applying section…
1Opinion of the Court
FRANK HUTCHISON AND BETTY HUTCHISON, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Hutchison v. Commissioner
Docket No. 2373-78.
United States Tax Court
T.C. Memo 1981-513; 1981 Tax Ct. Memo LEXIS 233; 42 T.C.M. (CCH) 1089; T.C.M. (RIA) 81513;
September 15, 1981.
Petitioner sold an apartment complex in 1971 pursuant to a "wrap-around" mortgage arrangement and properly elected to report the gain on the sale under section 453. Affter the purchaser was delinquent in making payments on his mortgage debt to petitioner-seller, a 1975 court approved settlement was executed between the…
2Cases cited11 opinions
- Commissioner v. LesterSupreme Court of the United States · 1961
- Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
- Stonecrest Corp. v. CommissionerUnited States Tax Court · 1955
- Waldrep v. CommissionerUnited States Tax Court · 1969
- Voight v. CommissionerUnited States Tax Court · 1977
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