Plowden v. Commissioner
United States Tax Court
Held, that, under sec. 1374, I.R.C. 1954, a net operating loss sustained in the taxable year 1963 by a corporation which had elected to be taxed as a small business corporation under subch.
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Held, that, under sec. 1374, I.R.C. 1954, a net operating loss sustained in the taxable year 1963 by a corporation which had elected to be taxed as a small business corporation under subch. S, I.R.C. 1954, was allowable as a deduction in 1963 to the petitioners, the shareholders of the corporation, only to the extent of the adjusted basis of their stock plus the adjusted basis of any corporate indebtedness to them, and that no greater amount of such net operating loss of the corporation may be taken into account in computing the amount of the 1963 net operating loss of the shareholders for…
1Opinion of the Court
OPINION
Atkins, Judge:
The respondent determined income tax deficiencies of $597.38, $2,579.60, $5,975.52, and $280.94 against the petitioners Richard Lee Plowden and Dale T. Plowden for the taxable years 1960, 1961, 1962, and 1963, respectively, and deficiencies of $1,213.82, $3,394.59, and $7,079.85 against the petitioner Edward Lee Roberts for the taxable years 1960, 1961, and 1962, respectively. The issue is whether the petitioners are entitled to deduct on their individual returns for the taxable year 1963 their share of the entire net operating loss sustained by their wholly owned…
2Cases cited2 opinions
- John E. Byrne v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1966
- Byrne v. CommissionerUnited States Tax Court · 1965
3Cited by15 opinions
- Borg v. CommissionerUnited States Tax Court · 1968
- Prashker v. CommissionerUnited States Tax Court · 1972
- Perry v. CommissionerUnited States Tax Court · 1968
- Neal v. United StatesDistrict Court, C.D. California · 1970
- Edward Lee Roberts v. Commissioner of Internal Revenue, Richard Lee Plowden and Dale T. Plowden v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1968
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