Legal Opinion

Frentz v. Commissioner

United States Tax Court

Decided June 28, 1965No. Docket Nos. 4650-63, 4651-63, 4652-63PublishedCited by 77 opinions

Petitioners acquired all the stock of an Indiana corporation which was an electing small business corporation under subchapter S, I.R.C. 1954, having a fiscal year ending October 31. Intending to form a new corporation under Kentucky law to operate the business from November 1, 1959, as an electing small business corporation, they filed a purported election on November 30, 1959. The new corporation was not chartered until January 11, 1960. The new corporation operated at a…

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Petitioners acquired all the stock of an Indiana corporation which was an electing small business corporation under subchapter S, I.R.C. 1954, having a fiscal year ending October 31. Intending to form a new corporation under Kentucky law to operate the business from November 1, 1959, as an electing small business corporation, they filed a purported election on November 30, 1959. The new corporation was not chartered until January 11, 1960. The new corporation operated at a loss in the fiscal period ending October 31, 1960, and the petitioners claimed deductions for their pro rata shares of…

1Opinion of the Court

Bruce, Judge:

The respondent determined deficiencies in the income taxes of the respective petitioners for the year 1960 as follows:

Docket No. Petitioner Deficiency

4650-63 J. William Erente and Barbara B. Erente. $620.33

4651-63 Orville Brown and Alice Brown_ 3,750.45

4652-63 Morris Brown and Judy Brown_ 3,626.61

The sole issue is whether the petitioners are entitled to deduct net losses claimed on their returns for 1960. Some facts are stipulated.

FINDINGS OF FACT

The stipulation of facts and exhibits attached thereto are incorporated herein by this reference.

The above-named petitioners are…

2Cases cited7 opinions

  1. Morrissey v. CommissionerSupreme Court of the United States · 1935
  2. J. E. Riley Investment Co. v. CommissionerSupreme Court of the United States · 1940
  3. Sicanoff Vegetable Oil Corp. v. CommissionerUnited States Tax Court · 1957
  4. Pestcoe v. CommissionerUnited States Tax Court · 1963
  5. Simons v. United StatesDistrict Court, D. Connecticut · 1962

2 more not listed; retrieve them via the Exa API.

3Cited by77 opinions

  1. Estate of Horvath v. CommissionerUnited States Tax Court · 1973
  2. Stratton v. CommissionerUnited States Tax Court · 1970
  3. Markwardt v. CommissionerUnited States Tax Court · 1975
  4. Riss v. CommissionerUnited States Tax Court · 1971
  5. Madison Gas & Electric Co. v. CommissionerUnited States Tax Court · 1979

72 more not listed; retrieve them via the Exa API.

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