Shaker-Lee Theatre Co. v. Commissioner
United States Tax Court
During the taxable year, petitioner and another corporation each held 50 per cent of the outstanding capital stock of Kinmore, a corporation organized by them to build and operate a $100,000 motion picture theatre. They advanced equal sums to Kinmore. The theatre project was later abandoned.
Read the full summary
During the taxable year, petitioner and another corporation each held 50 per cent of the outstanding capital stock of Kinmore, a corporation organized by them to build and operate a $100,000 motion picture theatre. They advanced equal sums to Kinmore. The theatre project was later abandoned. Petitioner designated $1,470 of the amount advanced by it as its capital investment and claimed a bad debt deduction of $10,632.35 on the grounds that that sum which it had advanced was a worthless and uncollectible loan. Held, all sums advanced by petitioner to Kinmore were capital contributions.
1Opinion of the Court
Shaker-Lee Theatre Co. v. Commissioner.
Shaker-Lee Theatre Co. v. Commissioner
Docket No. 49553.
United States Tax Court
T.C. Memo 1955-124; 1955 Tax Ct. Memo LEXIS 216; 14 T.C.M. (CCH) 452; T.C.M. (RIA) 55124;
May 18, 1955
During the taxable year, petitioner and another corporation each held 50 per cent of the outstanding capital stock of Kinmore, a corporation organized by them to build and operate a $100,000 motion picture theatre. They advanced equal sums to Kinmore. The theatre project was later abandoned. Petitioner designated $1,470 of the amount advanced by it as its capital investment and…
2Cases cited5 opinions
- Schnitzer v. CommissionerUnited States Tax Court · 1949
- Dobkin v. CommissionerUnited States Tax Court · 1950
- Janeway v. CommissionerUnited States Tax Court · 1943
- Thomas v. CommissionerUnited States Tax Court · 1943
- Barton v. ReynoldsNew York Supreme Court · 1913