- 11 -
Although section 164(d)(4) is captioned in terms of "seller
and purchaser", we think it applies here. As we have held above,
the involuntary taking of the property by the FDIC is treated
broadly as a "disposition", a term that fairly includes "sale".
And the parties to the involuntary transaction thus qualify as
"seller and purchaser" within the meaning of the statute. There
is no dispute between the parties here that the real property tax
year here is the year July 1, 1990 to June 30, 1991, and that the
FDIC's payment of taxes related to that tax year. Accordingly,
pursuant to section 164(d)(1)(A), that portion of the $49,602.93
real estate taxes paid by the FDIC, which is allocable to the
period July 1, 1990 to April 10, 1991, the day before seizure of
the property by the FDIC, is "imposed on the seller
[petitioner]." On brief, petitioner states that the amount thus
allocable to and deductible by him is $38,381. Our own
computation gives us a slightly higher figure. However, apart
4(...continued)
(1) General rule.--For purposes of subsection (a),
if real property is sold during any real property tax
year, then--
(A) so much of the real property tax as is
properly allocable to that part of such year which ends
on the day before the date of the sale shall be treated
as a tax imposed on the seller, and
(B) so much of such tax as is properly allocable
to that part of such year which begins on the date of
the sale shall be treated as a tax imposed on the
purchaser.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011