Borg v. Commissioner
United States Tax Court
1. Held, for purposes of computing the allowable portion of a deductible corporate net operating loss under sec. 1374(c)(2)(B), I.R.C. 1954, petitioners, as cash basis taxpayers, had a zero basis in notes issued by their electing small business corporation, as evidence of indebtedness arising from an employment contract. 2. Held, further, loans to an electing small business corporation by third parties endorsed by its shareholders as sureties are not "indebtedness of the…
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1. Held, for purposes of computing the allowable portion of a deductible corporate net operating loss under sec. 1374(c)(2)(B), I.R.C. 1954, petitioners, as cash basis taxpayers, had a zero basis in notes issued by their electing small business corporation, as evidence of indebtedness arising from an employment contract. 2. Held, further, loans to an electing small business corporation by third parties endorsed by its shareholders as sureties are not "indebtedness of the corporation to the [shareholders]" under sec. 1374(c)(2)(B), I.R.C. 1954, where the shareholders had not been called upon…
1Opinion of the Court
Joe E. Borg and Ruth P. Borg, Petitioners v. Commissioner of Internal Revenue, Respondent
Borg v. Commissioner
Docket No. 2395-66
United States Tax Court
50 T.C. 257; 1968 U.S. Tax Ct. LEXIS 131;
May 7, 1968, Filed
Decision will be entered under Rule 50.
1. Held, for purposes of computing the allowable portion of a deductible corporate net operating loss under sec. 1374(c)(2)(B), I.R.C. 1954, petitioners, as cash basis taxpayers, had a zero basis in notes issued by their electing small business corporation, as evidence of indebtedness arising from an employment contract.
2. Held, further, loans to an…
2Cases cited21 opinions
- Detroit Edison Co. v. CommissionerSupreme Court of the United States · 1943
- Gilman v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1931
- Perry v. CommissionerUnited States Tax Court · 1966
- William H. Perry and Marian E. Perry v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1968
- Borg v. CommissionerUnited States Tax Court · 1968
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