Borg v. Commissioner
United States Tax Court
1. Held, for purposes of computing the allowable portion of a deductible corporate net operating loss under sec. 1374(c)(2)(B), I.R.C. 1954, petitioners, as cash basis taxpayers, had a zero basis in notes issued by their electing small business corporation, as evidence of indebtedness arising from an employment contract. 2. Held, further, loans to an electing small business corporation by third parties endorsed by its shareholders as sureties are not "indebtedness of the…
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1. Held, for purposes of computing the allowable portion of a deductible corporate net operating loss under sec. 1374(c)(2)(B), I.R.C. 1954, petitioners, as cash basis taxpayers, had a zero basis in notes issued by their electing small business corporation, as evidence of indebtedness arising from an employment contract. 2. Held, further, loans to an electing small business corporation by third parties endorsed by its shareholders as sureties are not "indebtedness of the corporation to the [shareholders]" under sec. 1374(c)(2)(B), I.R.C. 1954, where the shareholders had not been called upon…
1Opinion of the Court
FeathekstoN, Judge:
Respondent determined a deficiency in petitioners’ 1962 joint Federal income tax of $3,844.18. Both parties having conceded certain issues, the sole issue remaining for decision is whether petitioners’ deductible share of the net operating losses incurred by an electing small business corporation exceeds the amounts allowed by the respondent.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulations and exhibits thereto are incorporated herein by this reference.
Petitioners Joe E. Borg and Ruth P. Borg are husband and wife and resided at Tulsa,…
2Cases cited20 opinions
- Detroit Edison Co. v. CommissionerSupreme Court of the United States · 1943
- Gilman v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1931
- Perry v. CommissionerUnited States Tax Court · 1966
- William H. Perry and Marian E. Perry v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1968
- Dial v. CommissionerUnited States Tax Court · 1955
15 more not listed; retrieve them via the Exa API.
3Cited by42 opinions
- Underwood v. CommissionerUnited States Tax Court · 1975
- Estate of Leavitt v. CommissionerUnited States Tax Court · 1988
- Edward M. Selfe and Jane B. Selfe v. United StatesCourt of Appeals for the Eleventh Circuit · 1985
- Raynor v. CommissionerUnited States Tax Court · 1968
- Blum v. CommissionerUnited States Tax Court · 1972
37 more not listed; retrieve them via the Exa API.