Brubaker v. Commissioner
United States Tax Court
Held, that a transaction between a corporation and its principal stockholder was a sale of debts owed by another stockholder and not a compromise of such debts with the debtor, and any loss sustained was a capital loss which is not deductible in the absence of capital gains. Secs. 23 (g) (1) and 117 (d) (1), I. R. C. 1939.
1Opinion of the Court
Atkins, Judge:
The respondent determined transferee liability against the petitioner for deficiencies in tax of Joliet Properties, Inc., as follows: A deficiency in declared value excess-profits tax for the taxable year ended January 31, 1946, in the amount of $1,196.96, and deficiencies in income tax for the taxable years ended January 31, 1947 and 1948, in the respective amounts of $7,090.37 and $2,213.80.
The petitioner has conceded that she is the transferee of assets of the corporation and that in the event of a finding of additional tax liability she is liable therefor as transferee. An…
2Cases cited4 opinions
- O'Bryan Bros. v. COMMISSIONER OF INTERNAL REVENUECourt of Appeals for the Sixth Circuit · 1942
- American Felt Co. v. BurnetCourt of Appeals for the D.C. Circuit · 1932
- Rockford Varnish Co. v. CommissionerUnited States Tax Court · 1947
- Graham Mill & Elevator Co. v. ThomasCourt of Appeals for the Fifth Circuit · 1945
3Cited by4 opinions
- Davies v. CommissionerUnited States Tax Court · 1970
- Brubaker v. CommissionerUnited States Tax Court · 1957
- Davies v. CommissionerUnited States Tax Court · 1970
- Davies v. CommissionerUnited States Tax Court · 1970