Magill v. Commissioner
United States Tax Court
1. Petitioners Magill realized taxable income in 1971 when their indebtedness to Malag was discharged and such income was not excludable under the relief provisions of secs. 108 and 1017, I.R.C. 1954, because they did not file a consent to the regulations prescribed under sec. 1017 (relating to adjustment of basis) at such time and in such manner as required. 2. The forgiveness of the indebtedness from Magill to Malag was not a part of the transaction whereby Magill…
Read the full summary
1. Petitioners Magill realized taxable income in 1971 when their indebtedness to Malag was discharged and such income was not excludable under the relief provisions of secs. 108 and 1017, I.R.C. 1954, because they did not file a consent to the regulations prescribed under sec. 1017 (relating to adjustment of basis) at such time and in such manner as required. 2. The forgiveness of the indebtedness from Magill to Malag was not a part of the transaction whereby Magill transferred all the assets of his proprietorship to Malag for their book values as of Jan. 1, 1970. 3. Certain travel and…
1Opinion of the Court
Drennen, Judge:
In these consolidated cases respondent determined deficiencies in Federal income tax and additions to tax as follows:
Addition to tax under Docket No. Petitioner Year Deficiency sec. 6651(a)1 sec. 6653(a) 1519-76 William Magill and Joyce Magill.1970 $5,356.23 1971 63,190.84 — $3,159.54 1972 15,019.50 — 750.98 1520-76 Malag Tube Specialties, Inc.1971 22,816.83 $5,704.21
Mutual concessions have resolved a number of issues, leaving these questions to be decided:
Docket No. 1519-76(1) Whether income from discharge of indebtedness is excludable from petitioners’ 1971 gross income under…
2Cases cited12 opinions
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- Commissioner v. KowalskiSupreme Court of the United States · 1977
- Elliott v. CommissionerUnited States Tax Court · 1963
- Commissioner of Internal Rev. v. JS Abercrombie Co.Court of Appeals for the Fifth Circuit · 1947
- Leroy Jewelry Co. v. CommissionerUnited States Tax Court · 1961
7 more not listed; retrieve them via the Exa API.
3Cited by56 opinions
- United States v. McBrideDistrict Court, D. Utah · 2012
- Cramer v. CommissionerUnited States Tax Court · 1993
- Woodsum v. Comm'rUnited States Tax Court · 2011
- Allen v. Comm'rUnited States Tax Court · 2007
- Bick v. Peat Marwick & MainCourt of Appeals of Kansas · 1990
51 more not listed; retrieve them via the Exa API.