Opinion ID: 399155
Heading Depth: 2
Heading Rank: 4

Heading: Recovery of Accrued But Unpaid Interest.

Text: 33 A savings and loan does not recognize gain or loss at the time of foreclosure. I.R.C. § 595(a). The statute telescopes the foreclosure, purchase, and resale of property into a single transaction for tax purposes. Allstate Savings & Loan Ass'n, supra, 68 T.C. at 317. The statute also provides: 34 Any amount realized by (a savings and loan association) with respect to (foreclosure) property shall be treated for purposes of this chapter as a payment on account of such indebtedness, and any loss with respect thereto shall be treated as a bad debt to which the provisions of section 166 (relating to allowance of a deduction for bad debt) apply. 35