Siebert v. Commissioner
United States Tax Court
Held, petitioners are not entitled to deduct a loss occasioned by the worthlessness of their stock in Bromley & Siebert Excavating, Inc., in the year 1963, as an ordinary loss. The stock in question was not issued to petitioners pursuant to a sec. 1244, I.R.C. 1954, plan. The written resolution of the issuing corporation authorizing the issuance of the stock to petitioners did not constitute the written plan contemplated by sec. 1244 and regulations thereunder.
1Opinion of the Court
OPINION
Fay, Judge:
Respondent determined the following deficiencies in the petitioners’ income tax for the taxable years 1960 and 1963:
Year Deficiency
1960 _$1,641.16
1963 _ 3, 723. 70
On their Federal income tax return for the year 1963, petitioners deducted $25,000 as an ordinary business loss incurred in that year. Respondent disallowed such loss as a deduction against petitioners’ ordinary income and instead allowed it as a capital loss. As a result of this disallowance, respondent determined deficiencies for the taxable years 1960 and 1963. The deficiency in 1960 resulted from adjustments…
2Cases cited4 opinions
- Spiegel v. CommissionerUnited States Tax Court · 1968
- Mance T. Spillers and Mary J. Spillers v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1969
- Warner v. CommissionerUnited States Tax Court · 1967
- James A. And Audrey J. Warner v. Commissioner of Internal Revenue, Jerrie D. And Leta J. Schooley v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1968
3Cited by18 opinions
- Malinowski v. CommissionerUnited States Tax Court · 1979
- Kaplan v. CommissionerUnited States Tax Court · 1972
- Frantz v. CommissionerUnited States Tax Court · 1984
- Mogab v. CommissionerUnited States Tax Court · 1978
- CASCO BANK AND TRUST COMPANY v. United StatesDistrict Court, D. Maine · 1975
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