Johnson v. Commissioner
United States Tax Court
1. During the taxable year petitioners as stockholder-transferees paid the taxes owed by a corporation completely liquidated in a prior year. Held, these payments constitute capital losses to petitioners, Arrowsmith v. Commissioner, 344 U.S. 6. 2. In addition to paying the tax deficiencies of the liquidated corporation, petitioners paid the interest accrued on the deficiencies.
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1. During the taxable year petitioners as stockholder-transferees paid the taxes owed by a corporation completely liquidated in a prior year. Held, these payments constitute capital losses to petitioners, Arrowsmith v. Commissioner, 344 U.S. 6. 2. In addition to paying the tax deficiencies of the liquidated corporation, petitioners paid the interest accrued on the deficiencies. Held, that as to so much of the interest accrued subsequent to corporate liquidation, the interest was that of petitioners and is deductible by them under section 23 (b) of the Code. 3. Petitioners held stock in one…
1Opinion of the Court
OPINION.
Black, Judge:
The principal issue in this proceeding is whether the losses sustained during the taxable year by the petitioners are deductible as ordinary losses in full, or as capital losses subject to the limitations provided by law. The losses consist of payments made by petitioners as stockholder-transferees of taxes owed by a corporation which was liquidated in a prior year. There are also two incidental issues arising out of the losses presented for our decision here.
The Supreme Court in Arrowsmith v. Commissioner, 344 U. S. 6, affirming Commissioner v. Bauer, 193 F. 2d 734,…
2Cases cited3 opinions
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Magruder v. SuppleeSupreme Court of the United States · 1942
- Commissioner of Internal Revenue v. Arrowsmith Commissioner of Internal Revenue v. VivianCourt of Appeals for the Second Circuit · 1952
3Cited by5 opinions
- Ewing v. CommissionerUnited States Tax Court · 1956
- Koontz v. CommissionerUnited States Tax Court · 1957
- Ewing v. CommissionerUnited States Tax Court · 1956
- Johnson v. CommissionerUnited States Tax Court · 1952
- Koontz v. CommissionerUnited States Tax Court · 1957