Davison v. Commissioner
United States Tax Court
W, a cash basis partnership, entered into an agreement in 1980 to borrow up to $ 29 million from J. J made an initial disbursement of $ 19,645,000. Pursuant to the loan agreement, J applied $ 227,647.22 of the initial disbursement as a credit for interest W owed to J on a previous loan.
Read the full summary
W, a cash basis partnership, entered into an agreement in 1980 to borrow up to $ 29 million from J. J made an initial disbursement of $ 19,645,000. Pursuant to the loan agreement, J applied $ 227,647.22 of the initial disbursement as a credit for interest W owed to J on a previous loan. Pursuant to a subsequent modification of the 1980 loan agreement, J agreed to advance $ 1,587,310.46 to W to enable W to satisfy its current interest obligation to J. J made a wire transfer of $ 1,587,310.46 to W's bank account on Dec. 30, 1980. On Dec. 31, 1980, W made a wire transfer to J to satisfy W's…
1Opinion of the Court
OPINION
Ruwe, Judge:
Respondent determined deficiencies of $753 and $402,169 in petitioners’ 1977 and 1980 Federal income taxes, respectively. After a concession by respondent, the issue for decision is whether White Tail, a general partnership, “paid” interest when it borrowed the funds used to satisfy its interest obligations from the same lender to whom the interest was owed. Petitioner Charles H. Davison was a partner in White Tail, and petitioners claimed their distributive share of the ordinary loss reported by White Tail on their 1980 Federal income tax return.
Background
This case was…
2Cases cited20 opinions
- Minnesota Tea Co. v. HelveringSupreme Court of the United States · 1938
- Eckert v. BurnetSupreme Court of the United States · 1931
- Eli D. Goodstein v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Eli D. GoodsteinCourt of Appeals for the First Circuit · 1959
- Helvering v. PriceSupreme Court of the United States · 1940
- Don E. Williams Co. v. CommissionerSupreme Court of the United States · 1977
15 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Charles H. & Lessie B. Davison v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1998
- Charles H. Davison and Leslie B. Davison v. CommissionerUnited States Tax Court · 1996
- Charles Mellor Hargreaves & Karima Hargreaves v. CommissionerUnited States Tax Court · 2013
- Damer v. Comm'rUnited States Tax Court · 2009
- Davison v. CommissionerUnited States Tax Court · 1996
2 more not listed; retrieve them via the Exa API.