Johnson v. Commissioner
United States Tax Court
J and C formed a partnership, and J purchased insurance on the life of C to protect his investment. C died, and partnership assets were distributed to C's widow in exchange for her assumption of a debt of the partnership. Held, any loss subsequently arising in connection with such partnership assets was not sustained by the partnership and J's loss was of his investment in the partnership.
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J and C formed a partnership, and J purchased insurance on the life of C to protect his investment. C died, and partnership assets were distributed to C's widow in exchange for her assumption of a debt of the partnership. Held, any loss subsequently arising in connection with such partnership assets was not sustained by the partnership and J's loss was of his investment in the partnership. Held, further, the life insurance proceeds compensated J for his loss within the meaning of sec. 165(a), I.R.C. 1954.
1Opinion of the Court
Simpson, Judge:
The Commissioner determined a deficiency in the petitioners’ Federal income tax for 1971 of $6,768.70. The issues to be decided are: (1) Whether a partnership incurred an abandonment loss in 1971 prior to its termination, or whether the petitioner, a partner in such partnership, realized a loss on the liquidation of his interest in the partnership; and (2) whether the petitioner was compensated for such loss by the proceeds of life insurance paid to him due to the death of his partner.1
FINDINGS OF FACT
Some of the facts have been stipulated, and those facts are so found.
The…
2Cases cited11 opinions
- Real Estate - Land Title & Trust Co. v. United StatesSupreme Court of the United States · 1940
- Putoma Corp. v. CommissionerUnited States Tax Court · 1976
- Louis Spitalny and Betty Spitalny, His Wife v. United States of America, William Erdwurm and Bart F. Erdwurm, His Wife v. United StatesCourt of Appeals for the Ninth Circuit · 1970
- Fox v. CommissionerUnited States Tax Court · 1968
- Estate of Munter v. CommissionerUnited States Tax Court · 1975
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3Cited by3 opinions
- Alson N. Johnson and Margaret C. Johnson v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1978
- Alson N. Johnson and Margaret C. Johnson v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1978
- Johnson v. CommissionerUnited States Tax Court · 1976