The $2,447,091 mortgage swap that toppled a savings-and-loan
A Cincinnati savings-and-loan swapped two nearly identical mortgage pools and claimed a $2,447,091 tax loss - who decides when a loss is real?
The $2,447,091 mortgage swap that toppled a savings-and-loan
In this episode, we follow Cottage Savings Association’s mortgage swap, the regulatory memo that made it possible, and the tax fight that escalated to the Supreme Court. What counted as “identical” property, and how did a $2,447,091 gap become a constitutional question?
Person: Cottage Savings Association
Date: 1980 (swap); 1981 (IRS denial)
Location: Cincinnati, Ohio
Event: Mortgage-pool…
The skinny
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