Denniston v. Commissioner
United States Board of Tax Appeals
Petitioner Harold S. Denniston owned a note secured by a mortgage on real estate. In 1934 he surrendered the note and mortgage security thereon in consideration of the receipt of Home Owners' Loan Corporation bonds and a new note for the difference between the value of the bonds received and the amount of the debt.
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Petitioner Harold S. Denniston owned a note secured by a mortgage on real estate. In 1934 he surrendered the note and mortgage security thereon in consideration of the receipt of Home Owners' Loan Corporation bonds and a new note for the difference between the value of the bonds received and the amount of the debt. During the year he ascertained that the balance of the old debt included in the principal of the new note was worthless and charged it off on his books of account, and claimed the amount as a deduction from his gross income. Held, that the debt in the amount of $8,602.16 charged…
1Opinion of the Court
*837OPINION.
Smith :
The position of the respondent on the issue presented was stated by his counsel at the hearing as follows:
* * * Out position is that the note was worthless when he got it on May 24, 1934, and it was worthless at the end of the year. Really there was no loss sustained on the note. Our contention is that on May 24, 1934, when Mr. Denniston exchanged his mortgage for Home Owners Loan Corporation’s bonds, there was an exchange from one property to another, which resulted in a taxable transaction. Now he got less than the face of the mortgage, If there was any loss, it was sustained…
2Cases cited11 opinions
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Carpenter v. LonganSupreme Court of the United States · 1873
- Lewellyn v. Electric Reduction Co.Supreme Court of the United States · 1927
- Express Co. v. CaldwellSupreme Court of the United States · 1875
- Sexton v. . BreeseNew York Court of Appeals · 1892
6 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Denniston v. CommissionerUnited States Board of Tax Appeals · 1938
- Mannarino v. CommissionerUnited States Tax Court · 1964
- Schwartz v. CommissionerUnited States Tax Court · 1949
- Stewart v. CommissionerUnited States Board of Tax Appeals · 1939