Anbaco-Emig Corp. v. Commissioner
United States Tax Court
Petitioner, a closely held corporation engaged in the tool and die business, sold all of its machinery, fixtures, and inventory in 1958 after suffering net operating losses. It remained substantially inactive until 1960 when it purchased and began renting a loft building profitably. Relying upon excess profits tax credits cases, respondent denied claimed net operating loss carryover deductions even though the ownership of petitioner remained unchanged.
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Petitioner, a closely held corporation engaged in the tool and die business, sold all of its machinery, fixtures, and inventory in 1958 after suffering net operating losses. It remained substantially inactive until 1960 when it purchased and began renting a loft building profitably. Relying upon excess profits tax credits cases, respondent denied claimed net operating loss carryover deductions even though the ownership of petitioner remained unchanged. Held, Rev. Rul. 63-40, 1963-1 C.B. 46, and the many cases distinguishing between net operating loss deductions and excess profits tax credit…
1Opinion of the Court
OPINION
Section 172(b)(1)(B)1’2 allows a taxpayer to carry over a net operating loss incurred in 1 year to each of the 5 taxable years following the loss. Eespondent does not dispute that in the instant case net operating losses were incurred, but argues that they were incurred by a taxpayer which was not the same taxpayer as the petitioner.
It is his position that when petitioner sold all of its operating assets and ceased operation in 1958, it became "de facto” dissolved. "When the loft building was acquired by petitioner in 1960, respondent argues that a new corporation was effectively…
2Cases cited11 opinions
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Palmer v. CommissionerSupreme Court of the United States · 1937
- Weir Long Leaf Lumber Co. v. CommissionerUnited States Tax Court · 1947
- Wier Long Leaf Lumber Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1949
- Acampo Winery & Distilleries, Inc. v. CommissionerUnited States Tax Court · 1946
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3Cited by2 opinions
- Arwood Corp. v. CommissionerUnited States Tax Court · 1971
- Anbaco-Emig Corp. v. CommissionerUnited States Tax Court · 1967