A tenant-stockholder of a cooperative housing corporation had sufficient interest in the cooperative’s common areas for purposes of claiming a casualty loss for a special assessment levied to pay for damages resulting from the collapse of a retaining wall located on the cooperative’s property. Contrary to the Tax Court’s determination otherwise, under the cooperative lease agreement and house rules, the individual had the exclusive right to use her apartment and a nonexclusive right to use the grounds shared by her fellow residents and their guests, but not the general public. Thus, under state (New York) law, the individual had property rights in the grounds within the meaning of Code Sec. 165(e)(3) . The issue of whether the claimed losses arose from a “casualty” was not addressed.
Vacating and remanding the Tax Court, Dec. 58,574 , 136 TC 247.
C.A. Alphonso, CA-2, 2013-1 ustc ¶50,179
Code Sec. 165
CCH Reference – 2013FED ¶10,005.545
Code Sec. 216
CCH Reference – 2013FED ¶12,603.01
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CCH Reference – TRC INDIV: 54,352
CCH Reference – TRC REAL: 9,250