Shea v. Commissioner
United States Tax Court
Having reason to believe that such action would enhance the value of his stock in a corporation, the petitioner in 1953 joined in guaranteeing paper of the corporation's subsidiaries.
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Having reason to believe that such action would enhance the value of his stock in a corporation, the petitioner in 1953 joined in guaranteeing paper of the corporation's subsidiaries. In 1954, and at a time when he neither had paid nor had been called upon to pay any amount under his guaranty and neither the corporation nor any of its subsidiaries were, or at any prior time had been, insolvent or in immediate danger of insolvency, the petitioner made payments totaling $ 26,815.83 to be relieved of his liability under the guaranty. Held, that the loss sustained by petitioner by reason of the…
1Opinion of the Court
Withey, Judge:
Deficiencies have been determined in the income tax of petitioners for the calendar years 1954 and 1955 in the respective amounts of $11,224.42 and $1,060.26 and additions to tax under sections 294(d) (1) (B) and 294(d) (2) of the Internal Revenue Code of 1939 for 1954 in the respective amounts of $67.50 and $253.47.
The issues for decision are (1) whether respondent has erred in treating as a capital loss a loss deduction taken by petitioners as an ordinary loss, and (2) whether attorney fees paid by petitioners in 1955 were properly deducted as an ordinary loss. Other issues…
2Cases cited5 opinions
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Stamos v. CommissionerUnited States Tax Court · 1954
- Lloyd-Smith v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1941
- S. D. Ferguson v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
- Ferguson v. CommissionerUnited States Tax Court · 1957
3Cited by40 opinions
- Santa Anita Consol., Inc. v. CommissionerUnited States Tax Court · 1968
- Rushing v. CommissionerUnited States Tax Court · 1972
- Perry v. CommissionerUnited States Tax Court · 1966
- Martin v. CommissionerUnited States Tax Court · 1969
- Siple v. CommissionerUnited States Tax Court · 1970
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