MacMurray v. Commissioner
United States Tax Court
1. Husband and wife owned a ranch business as community property. The total deductions (other than taxes and interest) attributable to the business as a whole exceeded by more than $ 50,000 the gross income derived therefrom for each of 5 successive years, but the share of those deductions available to each spouse did not exceed such spouse's share of the gross income from such business by more than $ 50,000 for 5 successive years.
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1. Husband and wife owned a ranch business as community property. The total deductions (other than taxes and interest) attributable to the business as a whole exceeded by more than $ 50,000 the gross income derived therefrom for each of 5 successive years, but the share of those deductions available to each spouse did not exceed such spouse's share of the gross income from such business by more than $ 50,000 for 5 successive years. Held, section 130, Internal Revenue Code, is inapplicable. 2. Petitioners MacMurray, Fenton, and a third person purchased a story in 1944 and sold it in 1945 to…
1Opinion of the Court
Raum, Judge:
The respondent determined the following deficiencies in income tax:
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The issues are:(1) When a business operated by a marital community in California sustains losses for 5 consecutive years, does the $50,000 limitation provided for in section 130 of the Internal Revenue Code apply to the total loss sustained in each year by the community or to the share of such loss of each member of the community ?(2) Did the $64,000 and $31,000 received by petitioners Fred Mac-Murray and Leslie Fenton, respectively, in 1946, from the producers-distributors of the movie, “Pardon My…
2Cases cited4 opinions
- Poe v. SeabornSupreme Court of the United States · 1930
- United States v. MalcolmSupreme Court of the United States · 1931
- Stewart v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1938
- Ratto v. CommissionerUnited States Tax Court · 1953
3Cited by17 opinions
- Holt v. CommissionerUnited States Tax Court · 1961
- Rickey v. United StatesDistrict Court, W.D. Louisiana · 1976
- Griffin v. CommissionerUnited States Tax Court · 1959
- Sonnabend v. CommissionerUnited States Tax Court · 1966
- Litvak v. CommissionerUnited States Tax Court · 1954
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