Horne v. Commissioner
United States Tax Court
Petitioner (husband) was a partner in a three-man firm. The three partners, as individuals, owned all the stock in COINC, which, in turn, owned all the stock in CORP and CO. All three corporations performed construction work. N/A, a bonding company, wrote bonds for all three corporations. All three corporations indemnified N/A on cross-indemnity agreements. In 1960, CO notified N/A that it, N/A, would have to perform on its bond.
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Petitioner (husband) was a partner in a three-man firm. The three partners, as individuals, owned all the stock in COINC, which, in turn, owned all the stock in CORP and CO. All three corporations performed construction work. N/A, a bonding company, wrote bonds for all three corporations. All three corporations indemnified N/A on cross-indemnity agreements. In 1960, CO notified N/A that it, N/A, would have to perform on its bond. Because the three corporations were close to insolvency, N/A asked COINC's stockholders to indemnify it. Only petitioner agreed to do so. As a part of the…
1Opinion of the Court
Dawson, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes for the taxable years 1966,1967, and 1968 in the amounts of $56,280, $23,378, and $66,078, respectively.
Petitioners have conceded one issue. The only issue remaining for decision is whether they are entitled to a deduction for amounts paid in connection with an indemnity agreement entered into by them on behalf of their wholly owned corporation. The issue is argued under sections 162,165,166, and 212, I.R.C. 1954.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts, the…
2Cases cited37 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Putnam v. CommissionerSupreme Court of the United States · 1956
- United States v. GeneresSupreme Court of the United States · 1972
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
32 more not listed; retrieve them via the Exa API.
3Cited by35 opinions
- M. Seth Horne and Maurine D. Horne v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975
- Stoody v. CommissionerUnited States Tax Court · 1976
- Benak v. CommissionerUnited States Tax Court · 1981
- Fincher v. CommissionerUnited States Tax Court · 1995
- Black Gold Energy Corp. v. CommissionerUnited States Tax Court · 1992
30 more not listed; retrieve them via the Exa API.