Hensley v. Commissioner
United States Tax Court
T was member of a partnership that constructed an apartment house for a corporation under an F. H. A. commitment. The partnership originally owned most of the stock in the corporation and during the tax year (1952) owned about two-thirds of the stock. After completion of construction T assigned his partnership interest in the stock to his partner in consideration of payment of certain partnership obligations.
Read the full summary
T was member of a partnership that constructed an apartment house for a corporation under an F. H. A. commitment. The partnership originally owned most of the stock in the corporation and during the tax year (1952) owned about two-thirds of the stock. After completion of construction T assigned his partnership interest in the stock to his partner in consideration of payment of certain partnership obligations. Held, T's partnership interest in the stock was a capital asset and his loss upon disposition was subject to statutory limitations upon capital losses. Sec. 117 (a) (1) and (d) (2), I.…
1Opinion of the Court
OPINION.
Raum, Judge:
We encountered considerable difficulty in this case by reason of the lack of clarity as to the precise nature of petitioners’ claim and the vagueness of the evidence. Our repeated efforts, in the interests of justice, to obtain clarification at the trial, were only partly successful.
At the outset, it must be remembered that petitioners’ returns claimed a deduction in the amount of $36,670.89 as “Loss on Forfeiture of Interest Upon Withdrawal From Partnership — II & L Construction Company.” But the evidence nowhere could support any finding that Hensley forfeited an…
2Cases cited5 opinions
- Commissioner of Internal Revenue v. ShapiroCourt of Appeals for the Sixth Circuit · 1942
- Commissioner of Internal Revenue v. SmithCourt of Appeals for the Fifth Circuit · 1949
- Edwards v. Hogg (Three Cases)Court of Appeals for the Fifth Circuit · 1954
- Exposition Souvenir Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1947
- Gilbert v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1932
3Cited by1 opinion
- Hensley v. CommissionerUnited States Tax Court · 1958