TAX 9863 Lecture Notes - Lecture 29: Nonrecourse Debt, Mortgage Loan, General Partnership
Document Summary
Petitioner"s husband died and she was the executrix and sole beneficiary of his will. Her husband owned an apartment building subject to a mortgage. Petitioner contracted with the mortgagee to continue to operate the property and remit the net rental to mortgagee. Gain from the sale or disposition of property is the excess of the amount realized from the sale over the adjusted basis. Petitioner was the sole beneficiary of her husband"s will. He owned an apartment building and lot subject to a mortgage. Petitioner entered into an agreement with the mortgagee where she continued to operate the property and remit the net rentals to the mortgagee. This continued for seven years, and petitioner reported the gross rentals as income and claimed deductions for operating expenses paid on the property, for interest paid, and for the physical exhaustion of the building.
