Federal Bulk Carriers, Inc. v. Commissioner
United States Tax Court
F corp. (the taxpayer) and B corp. owned 100 percent of the outstanding securities in X corp., which they sold in 1961 to M corp. under a complicated arrangement (restructured in 1963) which in effect guaranteed a specified projected level of earnings of the only asset of substance (a tanker) indirectly owned by X through a wholly owned subsidiary of X. The earnings of the tanker failed to reach the projected level, and upon final termination of the arrangement in 1965 and…
Read the full summary
F corp. (the taxpayer) and B corp. owned 100 percent of the outstanding securities in X corp., which they sold in 1961 to M corp. under a complicated arrangement (restructured in 1963) which in effect guaranteed a specified projected level of earnings of the only asset of substance (a tanker) indirectly owned by X through a wholly owned subsidiary of X. The earnings of the tanker failed to reach the projected level, and upon final termination of the arrangement in 1965 and 1966, F sustained losses based upon its share of the amount by which the actual earnings of the tanker fell short of the…
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined deficiencies in petitioner’s Federal corporate income tax as follows:
Year Deficiency Year Deficiency
1962_$992.41 1966 _ $31,030.19
1964_1,041.56 1967 _ 15,016.00
1965_3,293.66 1968 _ 53,288.65
The only matter in controversy is whether certain losses petitioner incurred in 1965 and 1966 were capital losses. If they were, then the deductions in respect thereof were subject to the limitation set forth in section 1211,1.R.C. 1954, and moreover, petitioner did not sustain a net operating loss in the year 1965 which could be carried back to the years 1962…
2Cases cited14 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Luna v. CommissionerUnited States Tax Court · 1964
- Beck Chemical Equipment Corp. v. CommissionerUnited States Tax Court · 1957
9 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Federal Bulk Carriers, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1977
- Sierra Club v. CommissionerUnited States Tax Court · 1994
- Beaton v. CommissionerUnited States Tax Court · 1980
- Fred H. Lenway & Co. v. CommissionerUnited States Tax Court · 1978
- Freedom Newspapers, Inc. v. CommissionerUnited States Tax Court · 1977
8 more not listed; retrieve them via the Exa API.