Patten Fine Papers, Inc. v. Commissioner
United States Tax Court
1. Held, that petitioner may not use the net capital loss carryover of its liquidated subsidiary. 2. Held, that petitioner may not reduce the amount of its net long-term capital gains in 1949 by the amount of the net long-term capital losses sustained by its liquidated subsidiary in the taxable period January 1, 1949, to December 1, 1949. 3. Held, that petitioner, a cash basis taxpayer, in computing the amount of its personal holding company surtax liability for 1950, may…
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1. Held, that petitioner may not use the net capital loss carryover of its liquidated subsidiary. 2. Held, that petitioner may not reduce the amount of its net long-term capital gains in 1949 by the amount of the net long-term capital losses sustained by its liquidated subsidiary in the taxable period January 1, 1949, to December 1, 1949. 3. Held, that petitioner, a cash basis taxpayer, in computing the amount of its personal holding company surtax liability for 1950, may not deduct the amount of its income tax liability for 1949, which was paid in 1950, under section 505 (a) (1), 1939 Code.…
1Opinion of the Court
OPINION.
HaRkon, Judge:
Issue 1. Capital Loss Carryover.
Involved in the factual situation out of which this proceeding arises, are two corporations which were owned by related family groups. All of the stock of Patten Fine Papers, Inc., the petitioner, was owned by the wife and three children of Judson G. Rosebush, Sr., and all of the stock of Eosebush Brothers, Inc., the other corporation involved, was owned by Patten Fine, by two brothers of Judson, Sr., and by the wife of'one of the brothers. During the year 1949, the income of both corporations was derived entirely from dividends, interest,…
2Cases cited16 opinions
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- Stanton Brewery v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
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