Capitol Coal Corp. v. Commissioner
United States Tax Court
Held, cancellations of indebtedness by three of the taxpayer's creditors in the fiscal years ended May 31, 1942 and 1943, resulted in ordinary income in those years to the extent of the taxpayer's solvency after the cancellation, and the cancellation of indebtedness by a fourth creditor in the fiscal year 1942 was intended by such creditor as a gift; held, further, the tax benefit rule is not applicable under the facts of this case.
1Opinion of the Court
OPINION.
Mulroney, Judge:
The issue presented is whether the respondent was correct in disallowing a net operating loss deduction claimed by the petitioner for the fiscal year ended May 31,1944, in the amount of $29,992.14 on the ground that such loss deduction is eliminated by including in the petitioner’s income for the fiscal years ended May 31, 1942, and May 31, 1943, the respective amounts of $28,037.49 and $5,500 as income realized by the petitioner through the cancellation of indebtedness by creditors in those years. In the year ended May 31, 1942, creditors of the petitioner agreed to…
2Cases cited17 opinions
- Dobson v. CommissionerSupreme Court of the United States · 1944
- Commissioner v. JacobsonSupreme Court of the United States · 1949
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Bowers v. Kerbaugh-Empire Co.Supreme Court of the United States · 1926
- Farr v. CommissionerUnited States Tax Court · 1948
12 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- Putoma Corp. v. CommissionerUnited States Tax Court · 1976
- Bialock v. CommissionerUnited States Tax Court · 1961
- Capitol Coal Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1957
- Brutsche v. CommissionerUnited States Tax Court · 1976
- OKC Corp. v. CommissionerUnited States Tax Court · 1984
17 more not listed; retrieve them via the Exa API.