Hitchins v. Commissioner
United States Tax Court
P-husband loaned money to CCC, a subchapter C corporation, and received a note of CCC evidencing the loan. It was anticipated that CCC would develop a chemical database for a corporation subsequently to be formed. CMB was later formed with P-husband as a shareholder. CMB gave a note to CCC for the amount the latter had expended in developing the database. Subsequently, CMB paid that note by way of cash and assuming CCC's indebtedness to P-husband.
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P-husband loaned money to CCC, a subchapter C corporation, and received a note of CCC evidencing the loan. It was anticipated that CCC would develop a chemical database for a corporation subsequently to be formed. CMB was later formed with P-husband as a shareholder. CMB gave a note to CCC for the amount the latter had expended in developing the database. Subsequently, CMB paid that note by way of cash and assuming CCC's indebtedness to P-husband. CCC's note was not canceled, nor did CMB give its note to P-husband. CMB elected subchapter S status. Held, the amount loaned by P-husband to CCC…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined the following deficiencies in and additions to petitioners’ Federal income tax:
Additions to tax Sec. Sec. Sec. Year Deficiency 6653(a)(1)(A) 6653(a)(1)(B) 6653(a)(1)1
1986 $12,840 $642
1987 1988 3,060 2,137 153 $107
After certain concessions, the issues remaining for decision are: (1) Whether petitioner F. Howard Hitchins’ basis in a subchapter S corporation, under section 1366(d),1 should reflect a debt owed to him by a subchapter C corporation and assumed by the S corporation in partial payment of its debt to the C corporation, and (2) whether…
2Cases cited22 opinions
- Neely v. CommissionerUnited States Tax Court · 1985
- Bixby v. CommissionerUnited States Tax Court · 1972
- Commissioner v. National Alfalfa Dehydrating & Milling Co.Supreme Court of the United States · 1974
- Antonides v. CommissionerUnited States Tax Court · 1988
- Don E. Williams Co. v. CommissionerSupreme Court of the United States · 1977
17 more not listed; retrieve them via the Exa API.
3Cited by53 opinions
- Montgomery v. Comm'rUnited States Tax Court · 2006
- Williams v. Comm'rUnited States Tax Court · 2004
- Larry Bergman Patricia Bergman v. United StatesCourt of Appeals for the Eighth Circuit · 1999
- Internal Revenue Service v. CM Holdings, Inc. (In Re CM Holdings, Inc.)District Court, D. Delaware · 2000
- Spencer v. CommissionerUnited States Tax Court · 1998
48 more not listed; retrieve them via the Exa API.