Consolidated-Hammer Dry Plate & Film Co. v. Commissioner
United States Tax Court
Held: 1. Petitioner is not entitled to carry over and deduct from the income of its postreorganization business, under sec. 122, I.R.C. 1939, net operating losses which it had sustained in its prereorganization business.
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Held: 1. Petitioner is not entitled to carry over and deduct from the income of its postreorganization business, under sec. 122, I.R.C. 1939, net operating losses which it had sustained in its prereorganization business. "Continuity of business enterprise" principle of Libson Shops, Inc. v. Koehler, 353 U.S. 382, applied. 2. Real estate taxes paid by petitioner-lessee, an accrual basis taxpayer, under a lease agreement requiring lessee to pay all real estate taxes assessed on underlying property are not deductible in the year when such taxes are assessed and a lien attaches but only in the…
1Opinion of the Court
OPINION
Issue 1. Net Operating Loss Carryover Deduction
The question presented is whether petitioner, Consolidated-Hammer, in computing its taxable income for its taxable years ended December 31, 1952, 1954, and 1955, was entitled to deduct, pursuant to sections 23 (s) and 122 of the 1939 Code,7 net losses sustained by Hammer in the latter’s taxable years ended December 31, 1948, 1949, and 1950. The parties agree that under the relevant Code provisions, net operating loss deductions are not allowable unless there exists a continuity of business enterprise between the business which incurred the…
2Cases cited12 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Dixie Pine Products Co. v. CommissionerSupreme Court of the United States · 1944
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Huyler's (Corp.) v. CommissionerUnited States Tax Court · 1962
- H. H. Brown Co. v. CommissionerUnited States Board of Tax Appeals · 1927
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3Cited by5 opinions
- BALINO v. COMMISSIONERUnited States Tax Court · 2005
- Consolidated-Hammer Dry Plate & Film Co. v. CommissionerUnited States Tax Court · 1967
- Hecathorn v. CommissionerUnited States Tax Court · 1972
- RAS of Sand River, Inc. v. CommissionerUnited States Tax Court · 1990
- Wilkerson v. CommissionerUnited States Tax Court · 1990