Spiegel v. Commissioner
United States Tax Court
Held, petitioners are not entitled to deduct a loss occasioned by the worthlessness of their stock in Bernie's Mens Shop, Inc., in the year 1962 as an ordinary loss or as a loss carryback to the year 1959. Bernie's Mens Shop, Inc., did not issue its stock pursuant to sec. 1244, I.R.C. 1954, and the regulations thereunder, since it did not adopt a written plan to that effect which contained the requisite information.
1Opinion of the Court
OPINION
Petitioners contend that they are entitled to an ordinary loss for the years 1959 and 1962 based upon the worthlessness, in 1962, of their stock in Bernie’s Mens Shop, Inc. They argue that the corporation met the requirements of section 1244(c) (l)2 and the regulations thereunder pertaining to the issuance of its stock under an adopted, written plan.3 In the alternative, petitioners argue that the requirement of a written plan, as set forth in the regulations, is invalid. Respondent, on the other hand, contends that Bernie’s Mens Shop, Inc., met neither the requirements of section 1244…
2Cases cited3 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Morgan v. CommissionerUnited States Tax Court · 1966
3Cited by26 opinions
- Malinowski v. CommissionerUnited States Tax Court · 1979
- Godart v. CommissionerUnited States Tax Court · 1969
- Siebert v. CommissionerUnited States Tax Court · 1969
- Carl A. Gerstacker and Jayne H. Gerstacker v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1969
- Hayden v. CommissionerUnited States Tax Court · 1969
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