Daytona Beach Kennel Club, Inc. v. Commissioner
United States Tax Court
Petitioner acquired all the stock of Magnolia Park in 1966 in a reorganization of Magnolia Park under ch. X of the Bankruptcy Act. In 1969 Magnolia Park was merged into petitioner, and petitioner thereafter claimed net operating loss deductions based on a carryover of operating losses incurred by Magnolia Park prior to and during its bankruptcy.
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Petitioner acquired all the stock of Magnolia Park in 1966 in a reorganization of Magnolia Park under ch. X of the Bankruptcy Act. In 1969 Magnolia Park was merged into petitioner, and petitioner thereafter claimed net operating loss deductions based on a carryover of operating losses incurred by Magnolia Park prior to and during its bankruptcy. In the notice of deficiency respondent disallowed the deductions under secs. 381 and 382, I.R.C. 1954. At trial respondent stipulated that those sections did not disallow the deductions but that he was relying on sec. 269, I.R.C. 1954, and the case of…
1Opinion of the Court
Drennen, Judge:
Respondent determined the following deficiencies in petitioner’s income taxes:
FYE Apr. 30— Deficiency
1970 .$366,916.08
1971 .404,970.30
1972 .....15,684.32
787,570.70
The deficiencies in major part resulted from disallowance of net operating loss deductions during the taxable years at issue of $715,337.72, $850,238.23, and $32,675.65, respectively.1
The notice of deficiency set forth as grounds for the disallowance:(1) your acquisition of Magnolia Park, Inc. on April 30, 1969 pursuant to a confirmed plan for reorganization under Chapter X of the Bankruptcy Act does not entitle you…
2Cases cited16 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Bobsee Corporation v. United StatesCourt of Appeals for the Fifth Circuit · 1969
- Commodores Point Terminal Corp. v. CommissionerUnited States Tax Court · 1948
- A. C. Willingham v. United StatesCourt of Appeals for the Fifth Circuit · 1961
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3Cited by6 opinions
- Rolland L. King and Arlene P. King v. United StatesCourt of Appeals for the Fifth Circuit · 1981
- U.S. Shelter Corp. v. United StatesUnited States Court of Claims · 1987
- In Re Federated Department Stores, Inc.United States Bankruptcy Court, S.D. Ohio · 1992
- Daytona Beach Kennel Club, Inc. v. CommissionerUnited States Tax Court · 1978
- Fairfield Communities Land Co. v. CommissionerUnited States Tax Court · 1984
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