Stamos v. Commissioner
United States Tax Court
1. Petitioner was an organizer, stockholder, officer, and director of Paramount Exposition Shows, Inc. (referred to as the corporation). He guaranteed notes given by the corporation to purchase a carnival which it had been organized to run. The corporation became insolvent and discontinued business in December 1947. Petitioner in 1948 paid $ 3,000 in settlement of his guaranty.
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1. Petitioner was an organizer, stockholder, officer, and director of Paramount Exposition Shows, Inc. (referred to as the corporation). He guaranteed notes given by the corporation to purchase a carnival which it had been organized to run. The corporation became insolvent and discontinued business in December 1947. Petitioner in 1948 paid $ 3,000 in settlement of his guaranty. The corporation was not dissolved until December 15, 1950. Held, upon payment of the $ 3,000 by petitioner a debt arose in his favor from the corporation despite the fact that such debt was worthless when it arose.…
1Opinion of the Court
OPINION.
Black, Judge:
On October 2, 1948, petitioner paid $3,000 in settlement of his guarantor’s liability on various obligations of the- corporation. At the time petitioner gave his guaranty he expected the corporation to prosper and did not contemplate that he would be called upon to make payment under that obligation. When petitioner made the $3,000 payment the corporation was insolvent and was not conducting business operations. His right of reimbursement against the corporation was in fact worthless. However, the corporation was still then in existence and was not dissolved until…
2Cases cited19 opinions
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Lykes v. United StatesSupreme Court of the United States · 1952
- Great Island Holding Corp. v. CommissionerUnited States Tax Court · 1945
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3Cited by44 opinions
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Medeiros v. CommissionerUnited States Tax Court · 1981
- Rushing v. CommissionerUnited States Tax Court · 1972
- Perry v. CommissionerUnited States Tax Court · 1966
- Imel v. CommissionerUnited States Tax Court · 1973
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