Bihlmaier v. Commissioner
United States Tax Court
1. Petitioner made a down payment in 1945 on a contract to buy land. He did not carry out the contract, and claimed an ordinary loss in 1945 of the amount of the deposit. Respondent allowed the loss as a short term capital loss. Held, petitioner has failed to prove error in respondent's determination. 2. Petitioner deducted in his 1945 and 1946 returns advances made in each year to a corporation of which he was president and a substantial stockholder.
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1. Petitioner made a down payment in 1945 on a contract to buy land. He did not carry out the contract, and claimed an ordinary loss in 1945 of the amount of the deposit. Respondent allowed the loss as a short term capital loss. Held, petitioner has failed to prove error in respondent's determination. 2. Petitioner deducted in his 1945 and 1946 returns advances made in each year to a corporation of which he was president and a substantial stockholder. The corporation was in bad financial condition and operating at a loss. Held, the amounts advanced in 1945 are deductible as bad debts, but the…
1Opinion of the Court
OPINION.
Tietjens, Judge:
On the first issue, petitioner assigns error in respondent’s determination that the loss of $2,075 claimed as a deduction on his return for 1945 was a capital loss, deduction of which was limited by section 117 (d) of the Internal Revenue Code to $1,000, and not an ordinary loss deductible in full. The parties agree that the transaction was entered into for profit, that there was a loss in 1945, and that it amounted to $2,075. They also agree that the contract was a purchase contract binding on petitioner rather than a mere option to purchase and that under the…
2Cases cited11 opinions
- Helvering v. HammelSupreme Court of the United States · 1941
- Eckert v. BurnetSupreme Court of the United States · 1931
- Boissevain v. CommissionerUnited States Tax Court · 1951
- Ferguson v. CommissionerUnited States Tax Court · 1951
- Rogers v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1939
6 more not listed; retrieve them via the Exa API.
3Cited by46 opinions
- C. M. Gooch Lumber Sales Co. v. CommissionerUnited States Tax Court · 1968
- Boatman v. CommissionerUnited States Tax Court · 1959
- United States Freight Company and Subsidiaries v. The United StatesUnited States Court of Claims · 1970
- Funk v. CommissionerUnited States Tax Court · 1960
- Markle v. CommissionerUnited States Tax Court · 1952
41 more not listed; retrieve them via the Exa API.