Fox v. Commissioner
United States Tax Court
Petitioners, through a partnership, sold certain property under a contract in which they retained the right to remove or salvage the improvements. They subsequently discovered that, with minor exceptions, they could not utilize the improvements and they thereupon sold them as salvage. Held, petitioners failed to prove that their intent to utilize the improvements was fixed and a sufficiently significant force to support an abandonment loss to the partnership.
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Petitioners, through a partnership, sold certain property under a contract in which they retained the right to remove or salvage the improvements. They subsequently discovered that, with minor exceptions, they could not utilize the improvements and they thereupon sold them as salvage. Held, petitioners failed to prove that their intent to utilize the improvements was fixed and a sufficiently significant force to support an abandonment loss to the partnership. Held, further, petitioners failed to prove that certain business bad debts became worthless during the taxable year.
1Opinion of the Court
Tannenwald, Judge:
Respondent determined deficiencies in petitioners’ income taxes for their taxable years ending December 31,1962, as follows:
Petitioner Pocket No.— Peficiency
Orrin W. Fox and Ebba Fox_ 1867-66 $36, 560. 14
Richard L. Fox and Kathryn S. Fox_ 1868-66 36, 816. 87
All matters in issue involve the affairs of the Fox Investment Co., a partnership, in which petitioners Orrin W. Fox and Richard L. Fox were sole and equal partners. Consequently, 'both dockets were consolidated for trial and decision. Petitioners’ concessions leave two issues for our consideration:(1) Whether petitioners…
2Cases cited6 opinions
- Steadman v. Comm'rUnited States Tax Court · 1968
- Standard Linen Service, Inc. v. CommissionerUnited States Tax Court · 1959
- Meyer Feldman v. Wilson B. Wood, Director of Internal Revenue for ArizonaCourt of Appeals for the Ninth Circuit · 1964
- Blumenfeld Enterprises, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1956
- Commissioner of Internal Revenue v. GerstleCourt of Appeals for the Ninth Circuit · 1938
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3Cited by57 opinions
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- Dustin v. CommissionerUnited States Tax Court · 1969
- Milenbach v. CommissionerUnited States Tax Court · 1996
- Aston v. Comm'rUnited States Tax Court · 1997
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