1 . Mortgagor purchases a parcel of land from Seller for $ 1 0 0 , 0...
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Mortgagor purchases a parcel of land from Seller for $ Mortgagor borrows $ from Bank and pays that amount and an additional $ of cash to Seller giving Bank a nonrecourse mortgage on the land. The land is the security for the mortgage which bears an adequate interest rate.
bTwo years later when the land has appreciated in value to $ and Mortgagor has paid only interest on the $ mortgage, Mortgagor takes out a second nonrecourse mortgage of $ with adequate rates of interest from Bank again using the land as security. Does Mortgagor have income when she borrows the $ See Woodsam Associates, Inc. v Commissioner, Fd d Cir
cWhat is Mortgagors basis in the land if the $ of mortgage proceeds are used to improve the land?
dWhat is Mortgagors basis in the land if the $ of mortgage proceeds are used to purchase stocks and bonds worth $
eWhat result under the facts of d above, if when the principal amount of the two mortgages is still $ and the land is still worth $ Mortgagor sells the property subject to both mortgages to Purchaser for $ of cash? What is Purchasers cost basis in the land?
hWhat results to Mortgagor under the facts of d above, if the land declines in value from $ to $ and Mortgagor transfers the land by means of a quitclaim deed to Bank? See Parker v Delaney, Fd st Cir
iWhat results to Mortgagor under the facts of h above, if the land declines in value from $ to $ at the time of the quitclaim deed?
Investor purchased three acres of land, each acre worth $ for $ Investor sold one of the acres in year one for $ and a second in year two for $ The total amount realized by Investor was $ which is not in excess of her total purchase price. Does Investor have any gain or loss on the sales?
Related Book For
Federal Taxation 2015 Corporations Partnerships Estates & Trusts
ISBN: 9780133822144
28th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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