Torodor v. Commissioner
United States Tax Court
In 1947, Rogers Utilities, Inc., sold its business to a competitor including approximately 2,700 accounts receivable. These accounts receivable were sold for $ 32,672.34 less than their face value. Petitioner on its return claimed a loss of $ 32,672.34, deductible in full. The Commissioner in his determination of the deficiency has treated the loss as a capital loss limited to the extent provided in section 117 (d) (1) of the Code.
Read the full summary
In 1947, Rogers Utilities, Inc., sold its business to a competitor including approximately 2,700 accounts receivable. These accounts receivable were sold for $ 32,672.34 less than their face value. Petitioner on its return claimed a loss of $ 32,672.34, deductible in full. The Commissioner in his determination of the deficiency has treated the loss as a capital loss limited to the extent provided in section 117 (d) (1) of the Code. Held, following Graham Mill & Elevator Co. v. Thomas, 152 F. 2d 564, the Commissioner is sustained.
1Opinion of the Court
OPINION.
Black, Judge:
There is but one issue in this proceeding and that is whether the deficiency of $6,114.69 which respondent has determined against Rogers is correct. If it is correct, then petitioners Max Torodor and Sarah Torodor concede they are liable as transferees for the deficiency.
Petitioners contend that the deficiency is wrong because it is based upon a determination by respondent that a loss, which it is conceded Rogers incurred in its fiscal year ended August 31,1947, in the amount of $32,672.34, was a capital loss and deductible only to the extent provided in section 117 (d)…
2Cases cited1 opinion
- Graham Mill & Elevator Co. v. ThomasCourt of Appeals for the Fifth Circuit · 1945
3Cited by3 opinions
- City Stores Co. v. United StatesDistrict Court, E.D. Pennsylvania · 1964
- Estate of Lawrence Harrison v. CommissionerUnited States Tax Court · 1953
- Torodor v. CommissionerUnited States Tax Court · 1952