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1991, petitioner is not entitled to a capital loss carryover of
$3,000 in 1992.
Petitioner filed a petition with the Bankruptcy Court on
December 12, 1991, seeking protection under Chapter 7 of the
Bankruptcy Code. Petitioner was discharged from bankruptcy by
order entitled Discharge of Debtor dated March 26, 1992.
The total real estate taxes due on the Exeter Street
property during 1991 were $49,602.93. Petitioner agrees that
they were paid in 1991 by the FDIC, and an exhibit before us
discloses that they were paid on July 10, 1991, and August 15,
1991. Petitioner claimed in his 1991 Federal Income Tax return a
deduction in the amount of $24,801 for real estate taxes paid by
the FDIC. Respondent contends that petitioner is not entitled to
any real estate tax deduction because he was not the payor of the
real estate taxes.
1. Disposition of Exeter Street Property
Section 1001(a)1 provides that "The gain from the sale or
other disposition of property shall be the excess of the amount
realized therefrom over the adjusted basis". Section 1.1001-
2(a)(1), Income Tax Regs., includes in the amount realized "the
amount of liabilities from which the transferor is discharged as
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
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