Nathel v. Comm'r
United States Tax Court
In calculating ordinary income relating to $ 1,622,050 in loan payments received from two S corporations, for purposes of sec. 1366(a)(1), I.R.C., petitioners treated $ 1,437,248 in capital contributions they made to the S corporations as income to the S corporations and as restoring or increasing under sec. 1367(b)(2)(B), I.R.C., their tax bases in loans petitioners previously had made to the S corporations.
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In calculating ordinary income relating to $ 1,622,050 in loan payments received from two S corporations, for purposes of sec. 1366(a)(1), I.R.C., petitioners treated $ 1,437,248 in capital contributions they made to the S corporations as income to the S corporations and as restoring or increasing under sec. 1367(b)(2)(B), I.R.C., their tax bases in loans petitioners previously had made to the S corporations. Petitioners then used the restored or increased tax bases in the loans they made to the S corporations to offset ordinary income that otherwise would have been reportable by petitioners…
1Opinion of the Court
OPINION
Swift, Judge:
Respondent determined deficiencies in the respective amounts of $279,847 and $279,722 in petitioners Ira and Tracy Nathel’s and in petitioners Sheldon and Ann M. Nathel’s 2001 joint Federal income taxes. These cases have been consolidated for purposes of briefing and opinion.
In calculating petitioners’ ordinary income on receipt of $1,622,050 in loan payments that petitioners received from two S corporations, the underlying issues for decision are whether for purposes of section 1366(a)(1) petitioners’ $1,437,248 in capital contributions to the S corporations may be…
2Cases cited17 opinions
- Edwards v. Cuba RailroadSupreme Court of the United States · 1925
- Estate of Travis Mixon, Jr. v. United StatesCourt of Appeals for the Fifth Circuit · 1972
- Dixie Dairies Corp. v. CommissionerUnited States Tax Court · 1980
- Gitlitz v. CommissionerSupreme Court of the United States · 2001
- Rushing v. CommissionerUnited States Tax Court · 1972
12 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Ball v. Comm'rUnited States Tax Court · 2013
- Ira and Tracy Nathel v. CommissionerUnited States Tax Court · 2008
- Messina v. Comm'rUnited States Tax Court · 2017
- Nathel v. Comm'rUnited States Tax Court · 2008
- R Ball for R Ball III by Appt v. CommissionerUnited States Tax Court · 2013