Legal Opinion

Inductotherm Industries, Inc. v. Commissioner

United States Tax Court

Decided May 29, 1984No. Docket No. 2857-81UnpublishedCited by 2 opinions

P Corp. acquired the stock of S Corp., a corporation with substantial unused net operating loss carryovers and other built in tax losses, and immediately placed S Corp. in voluntary bankruptcy. After the referee in S Corp's. bankruptcy confirmed its plan of reorganization, P Corp. reactivated the business of S Corp. and, by advancing funds to S Corp., kept it alive for a period of about two years.

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P Corp. acquired the stock of S Corp., a corporation with substantial unused net operating loss carryovers and other built in tax losses, and immediately placed S Corp. in voluntary bankruptcy. After the referee in S Corp's. bankruptcy confirmed its plan of reorganization, P Corp. reactivated the business of S Corp. and, by advancing funds to S Corp., kept it alive for a period of about two years. P Corp's. successor then liquidated S Corp. into itself and attempted to utilize S Corp's. unused net operating loss carryovers. Held, P Corp's. advances to S Corp. constituted equity rather than…

1Opinion of the Court

INDUCTOTHERM INDUSTRIES, INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent

Inductotherm Industries, Inc. v. Commissioner

Docket No. 2857-81.

United States Tax Court

T.C. Memo 1984-281; 1984 Tax Ct. Memo LEXIS 389; 48 T.C.M. (CCH) 167; T.C.M. (RIA) 84281;

May 29, 1984.

P Corp. acquired the stock of S Corp., a corporation with substantial unused net operating loss carryovers and other built in tax losses, and immediately placed S Corp. in voluntary bankruptcy. After the referee in S Corp's. bankruptcy confirmed its plan of reorganization, P Corp. reactivated the business of S Corp.…

2Cases cited57 opinions

  1. Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
  2. Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
  3. Higgins v. SmithSupreme Court of the United States · 1940
  4. Fin Hay Realty Co. v. United StatesCourt of Appeals for the Third Circuit · 1968
  5. Benjamin D. And Madeline Prentice Gilbert, on Review v. Commissioner of Internal Revenue, on ReviewCourt of Appeals for the Second Circuit · 1959

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3Cited by2 opinions

  1. In Re Federated Department Stores, Inc.United States Bankruptcy Court, S.D. Ohio · 1992
  2. Wells Fargo & Co. v. United StatesDistrict Court, D. Minnesota · 2015

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