Cooledge v. Commissioner
United States Board of Tax Appeals
1. Petitioner, an individual on the cash basis, owned more than 50 percent of the stock in a corporation and under section 24(a)(6), Revenue Act of 1934, was not entitled to deduction of loss upon sale of property to it; he sold to it real estate, the corporation as a part of the purchase price paying during the taxable year interest and taxes, both accrued against the property.
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1. Petitioner, an individual on the cash basis, owned more than 50 percent of the stock in a corporation and under section 24(a)(6), Revenue Act of 1934, was not entitled to deduction of loss upon sale of property to it; he sold to it real estate, the corporation as a part of the purchase price paying during the taxable year interest and taxes, both accrued against the property. Petitioner in fact had a loss, which was based upon the purchase price, including the interest and taxes paid. Held, petitioner is entitled to deduction of such interest and taxes. 2. Petitioner as stockholder…
1Opinion of the Court
OPINION.
Disney:
Tbis proceeding involves income tax for the year 1934. Petitioner filed income tax return with the collector of internal revenue for the district of Georgia. Deficiency was determined in the amount of $721.06, and respondent by amended answer asks increase thereof to the amount of $934.89. Two questions are presented: (a) As to disallowance of deduction claimed for accrued taxes and interest, and (b) as to application of sections 115 (c) and 117 (a), Revenue Act of 1934, in computation of net income received upon liquidation of shares of stock. The facts were stipulated (and…
2Cited by15 opinions
- The South Bay Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1965
- Simon J. Murphy Company and Social Research Foundation, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1956
- Dunlap v. CommissionerUnited States Tax Court · 1980
- Utilities & Industries Corp. v. CommissionerUnited States Tax Court · 1964
- Estate of Broadhead v. CommissionerUnited States Tax Court · 1966
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