Opinion of the Court Cottage Savings Ass'n v. Commissioner

dissent

justice blackmun dissented, joined justice white.

first, blackmun wanted define material difference reference how term materiality defined. in tsc industries, inc. v. northway, inc. (1976), justice marshall himself had stated, in context of securities fraud, omitted fact material if there substantial likelihood reasonable shareholder consider important in deciding how vote. implication, material difference difference capable of influencing decision made parties transaction.
second, blackmun pointed out majority created of anomaly allowing property interests exchanged here identical accounting purposes different tax purposes.
finally, explained felt substance of transactions, including fact cottage savings retained 10% interest in loans traded away continue servicing them, did not point real difference should permit allowance of deduction.




^ chirelstein, marvin (2005). federal income taxation: law student s guide leading cases , concepts (tenth ed.). new york, ny: foundation press. p. 94. isbn 1-58778-894-2.