Rod Warren Ink v. Commissioner
United States Tax Court
P was a personal holding company. During P's fiscal years 1979, 1980, and 1981, P's manager embezzled funds. P did not discover the embezzlement until fiscal year 1982. Held, for purposes of the personal holding company tax provisions, secs. 541-547, sec. 165(e) precludes deduction of theft losses prior to the year of discovery.
1Opinion of the Court
OPINION
Cohen, Judge:
Respondent determined deficiencies of $33,723, $97,366, $86,233, and $739 in petitioner’s Federal income tax for taxable years ended March 31 of 1979, 1980, 1981, and 1983, respectively. The issue for decision is whether for purposes of the personal holding company tax imposed by section 541 theft losses are deductible only in the year of discovery by the taxpayer. Unless otherwise indicated, all section references are to the Internal Revenue Code as amended and in effect for the years in issue.
All of the facts have been stipulated, and the stipulated facts are…
2Cases cited11 opinions
- Henry Schwartz Corp. v. CommissionerUnited States Tax Court · 1973
- P.R. Farms, Inc. v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1987
- Asphalt Industries, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1969
- Jerome Castree Interiors, Inc. v. CommissionerUnited States Tax Court · 1975
- Marine v. CommissionerUnited States Tax Court · 1989
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3Cited by4 opinions
- Rod Warren Ink, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1990
- Rod Warren Ink v. CommissionerUnited States Tax Court · 1989
- White's Ferry v. CommissionerUnited States Tax Court · 1993
- Willoughby v. CommissionerUnited States Tax Court · 1994