- 2 -
gain upon disposition of certain property as a result of its
seizure by the Federal Deposit Insurance Corporation (FDIC); (2)
whether petitioner is entitled to a deduction for real estate
taxes paid by the FDIC on that property; and (3) whether
petitioner is subject to the Alternative Minimum Tax for 1991.
The year 1992 is involved only by reason of a $3,000 capital loss
carryover from 1991. The case was submitted on the basis of a
stipulation of facts.
Petitioner, Michael Correra, resided in Boston, Mass., when
the petition in this case was filed. On May 5, 1987, he
purchased commercial real estate located at 25 Exeter Street in
Boston. The purchase price was $3,000,000, and the sellers were
Robert Banker (Banker) and Alan E. Lewis (Lewis), as Trustees of
Commex Realty Trust.
In order to acquire the property, petitioner incurred
indebtedness as follows: (1) He executed a $2,000,000 Commercial
Real Estate Promissory Note to Capitol Bank and Trust Company
(Capitol Bank) secured by a first mortgage; and (2) he executed a
$1,000,000 commercial promissory note to Banker and Lewis secured
by a second mortgage. On the same day, May 5, 1987, Banker and
Lewis assigned their note and second mortgage to Capitol Bank.
By Agreement dated March 5, 1990, petitioner refinanced his
loan from Capitol Bank. Petitioner was then in default
(apparently with respect to interest) on the $2,000,000 note.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011