Beatty v. Commissioner
United States Tax Court
In 1959 petitioners purchased an Arizona on-sale retailer's liquor license. At that time, such license could be leased by the owner and was capable of transfer separately from the business itself. In addition, the number of such licenses was subject to a severely restricted quota.
Read the full summary
In 1959 petitioners purchased an Arizona on-sale retailer's liquor license. At that time, such license could be leased by the owner and was capable of transfer separately from the business itself. In addition, the number of such licenses was subject to a severely restricted quota. In 1961, the Arizona law was amended to make such licenses transferable only in connection with the business, to prohibit the lease thereof, and greatly to expand the number of such licenses which could be issued. Held, petitioners did not incur a deductible loss in 1961 of the amount paid for their license.
1Opinion of the Court
Tannenwald, Judge:
Respondent determined a deficiency in the Federal income tax of petitioners for the taxable year 1961 in the amount of $12,948.49.
The sole issue for our determination is whether petitioners were entitled to deduct the cost of an on-sale retailer’s liquor license as a loss under section 165(a) 1 as a result of the amendment of the statute under which the license had been issued.2
FIN-DINGS OF FACT
Some of the facts have been stipulated and are found accordingly. Monroe W. Beatty and Peggy Beatty, the petitioners herein, are husband and wife residing in Yuma, Ariz. They filed a…
2Cases cited20 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
- Bartels v. BirminghamSupreme Court of the United States · 1947
- Burnet v. Niagara Falls Brewing Co.Supreme Court of the United States · 1931
- Louisiana Land & Exploration Co. v. CommissionerUnited States Tax Court · 1946
15 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- A. J. Industries, Inc. v. United StatesCourt of Appeals for the Ninth Circuit · 1974
- CRST, Inc. v. CommissionerUnited States Tax Court · 1989
- Estate of Hesse v. CommissionerUnited States Tax Court · 1980
- Joffre v. United StatesDistrict Court, N.D. Georgia · 1971
- Beatty v. CommissionerUnited States Tax Court · 1966
6 more not listed; retrieve them via the Exa API.