Garber Industries Holding Co., Inc. v. Commissioner

124 T.C. No. 1

UNITED STATES TAX COURT GARBER INDUSTRIES HOLDING CO., INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 10871-01. Filed January 25, 2005. P, a closely held corporation, is the parent of an affiliated group that files consolidated Federal income tax returns. In April 1998, A sold all of his P shares to his brother, B. As a result of that sale, B’s percentage ownership of P increased by more than 50 percentage points. On its consolidated income tax return for 1998, P claimed a net operating loss (NOL) deduction of $808,935 for regular tax purposes and…