Commissioner v. Tufts, 461 U.S. 300 (1983), was a unanimous decision by the United States Supreme Court, which held that when a taxpayer sells or disposes of property encumbered by a nonrecourse obligation exceeding the fair market value of the property sold, the Commissioner of Internal Revenue may require him to include in the “amount realized” the outstanding amount of the obligation; the fair market value of the property is irrelevant to this calculation.
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Famous quotes containing the word tufts:
“Therefore all seasons shall be sweet to thee,
Whether the summer clothe the general earth
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Betwixt the tufts of snow on the bare branch
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—Samuel Taylor Coleridge (1772–1834)