Gilt Edge Textile Corp. v. Commissioner
United States Tax Court
In 1929 petitioner made a loan of $ 30,000 to an estate of which petitioner's president was a coexecutor. In 1931 the estate was in a precarious financial condition and, in order to enable petitioner to collect its debt, its president arranged for the purchase by petitioner from the estate of certain shares of stock, with the debt to be credited against the purchase price.
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In 1929 petitioner made a loan of $ 30,000 to an estate of which petitioner's president was a coexecutor. In 1931 the estate was in a precarious financial condition and, in order to enable petitioner to collect its debt, its president arranged for the purchase by petitioner from the estate of certain shares of stock, with the debt to be credited against the purchase price. Several years later the heirs and legatees and the other executors of the estate brought suit against petitioner's president, claiming mismanagement rendered the estate insolvent and alleging that the $ 30,000 payment in…
1Opinion of the Court
OPINION.
Arundell, Judge:
Eespondent disallowed the claimed deduction of $30,000 on the ground that it was a payment made to satisfy a personal liability of Philip Dimond. It appears from the evidence before us, however, that the item in question originated as an interest-bearing loan from petitioner to the estate of Louis Spitz in 1929. Philip Dimond, petitioner’s president, was also a coexecutor of the estate. In 1931, when it appeared that the estate was having financial difficulties, Dimond, acting in petitioner’s behalf, sought to obtain repayment of the loan from the estate to petitioner…
2Cases cited1 opinion
- Bibb v. AllenSupreme Court of the United States · 1893
3Cited by7 opinions
- Catholic News Publishing Co. v. CommissionerUnited States Tax Court · 1948
- Graham v. CommissionerUnited States Tax Court · 1963
- Commissioner of Internal Revenue v. Gilt Edge Textile Corp.Court of Appeals for the Third Circuit · 1949
- Justice Steel, Inc. v. CommissionerUnited States Tax Court · 1980
- Catholic News Publishing Co. v. CommissionerUnited States Tax Court · 1948
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