Weigman v. Commissioner
United States Tax Court
In the summer of 1960 petitioners invested in the stock of and made loans to a corporation organized in Arizona to own and operate a restaurant business in Scottsdale. Petitioner Ernest Weigman joined with two other original stockholders under a plan whereby each would invest $ 5,000 in stock and loan $ 10,000 to the corporation.
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In the summer of 1960 petitioners invested in the stock of and made loans to a corporation organized in Arizona to own and operate a restaurant business in Scottsdale. Petitioner Ernest Weigman joined with two other original stockholders under a plan whereby each would invest $ 5,000 in stock and loan $ 10,000 to the corporation. Shortly thereafter it became clear to petitioners that this arrangement would not result in a successful operation and they bought out the other two stockholders on Mar. 1, 1961. The corporation continued to carry on business activities. The corporation entered into…
1Opinion of the Court
Dawson, Judge:
Despondent determined the following income tax deficiencies against petitioners:
Taxable
year Deficiency
1958 -$21,593.31
1959 _ 4,619.79
1960 - 1,161.53
The primary issue for decision is whether the petitioners are entitled to deduct as a loss incurred in the operation -of a trade or business amounts loaned ‘by them to the Bird Gage Restaurant & Cocktail Lounge, Inc., a wholly owned corporation. A subsidiary issue is whether the petitioners are entitled to a business bad debt deduction. Petitioners claimed a loss for the year 1961 in -the amount of $158,669.67 and the deficiencies,…
2Cases cited13 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Whipple v. CommissionerSupreme Court of the United States · 1963
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
- Burnet v. ClarkSupreme Court of the United States · 1932
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3Cited by42 opinions
- Markwardt v. CommissionerUnited States Tax Court · 1975
- American Sav. Bank v. CommissionerUnited States Tax Court · 1971
- Rink v. CommissionerUnited States Tax Court · 1969
- Estate of Byers v. CommissionerUnited States Tax Court · 1972
- Sangers Home for Chronic Patients v. Comm'rUnited States Tax Court · 1979
37 more not listed; retrieve them via the Exa API.