Butler v. Commissioner
United States Tax Court
Petitioner George A. Butler, a practicing attorney, in 1951 executed an agreement with another individual whereby a limited partnership, National Housing Company, Ltd., was formed to manufacture and sell prefabricated houses. Petitioner was a limited or special partner and contributed $ 20,000 to the enterprise as his share of capital. Thereafter, during 1951 and 1952, he loaned National the aggregate amount of $ 51,655.81 for use in its business.
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Petitioner George A. Butler, a practicing attorney, in 1951 executed an agreement with another individual whereby a limited partnership, National Housing Company, Ltd., was formed to manufacture and sell prefabricated houses. Petitioner was a limited or special partner and contributed $ 20,000 to the enterprise as his share of capital. Thereafter, during 1951 and 1952, he loaned National the aggregate amount of $ 51,655.81 for use in its business. The entire amount of $ 51,655.81 was deducted in petitioners' joint return for 1952. Respondent disallowed the deduction of $ 50,000 of the above…
1Opinion of the Court
Fisher, Judge:
Respondent determined a deficiency in the income tax of petitioners for the taxable year 1952 in the amount of $10,596.16.
The sole question presented for our consideration is whether loans aggregating $50,000 made by petitioner to a partnership of which he was a limited partner are to be treated as a business bad debt under section 23 (k) (1) of the Code of 1939 or as a nonbusiness bad debt under section 23 (k) (4) thereof.
FINDINGS OP PACT.
Most of the facts have been stipulated and, together with exhibits, are incorporated herein by reference.
George A. and Anne G. Butler,…
2Cases cited15 opinions
- Higgins v. CommissionerSupreme Court of the United States · 1941
- United States v. Security Trust & Savings BankSupreme Court of the United States · 1950
- Dwight A. Ward v. Commissioner of Internal Revenue, Hanna P. Ward v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Cluett v. CommissionerUnited States Tax Court · 1947
- Ward v. CommissionerUnited States Tax Court · 1953
10 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Hager v. CommissionerUnited States Tax Court · 1981
- Goodwin v. CommissionerUnited States Tax Court · 1980
- Larsen v. CommissionerUnited States Tax Court · 1987
- Drobny v. CommissionerUnited States Tax Court · 1986
- Hoffman v. Comm'rUnited States Tax Court · 2002
27 more not listed; retrieve them via the Exa API.