Lorch v. Commissioner
United States Tax Court
In 1962, petitioners entered into an arrangement whereby cash and securities owned by them (approximately $ 100,000 in value for each) would be held by HS, would be subordinated to the claims of HS' creditors, and, upon notification of HS, would be liquidated and the proceeds utilized by HS. Petitioners were to be paid $ 5,000 annually by HS under the arrangement.
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In 1962, petitioners entered into an arrangement whereby cash and securities owned by them (approximately $ 100,000 in value for each) would be held by HS, would be subordinated to the claims of HS' creditors, and, upon notification of HS, would be liquidated and the proceeds utilized by HS. Petitioners were to be paid $ 5,000 annually by HS under the arrangement. In the event that petitioners' securities were liquidated, they would be entitled to receive subordinated debentures in the face amount of the proceeds of liquidation and cash deposited with HS. HS gave the necessary notice to…
1Opinion of the Court
Tannenwald, Judge:
Respondent determined the following deficiencies in petitioners’ Federal income taxes:
Taxpayer Year Deficiency
Joseph Lorch and Hannah Lorch. 1970 ■ $61,134.00
Michael T. Harges and Janet G. Harges. 1970 35,650.13
1971 1,079.00
The sole issues for decision are the extent to which petitioners sustained deductible losses in 1970 and the nature of any such losses, i.e., capital or ordinary.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly. The stipulation of facts and the exhibits attached thereto are incorporated herein by reference.
Joseph Lorch…
2Cases cited26 opinions
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Bazley v. CommissionerSupreme Court of the United States · 1947
- Santa Anita Consol., Inc. v. CommissionerUnited States Tax Court · 1968
- Commissioner of Internal Revenue v. Neustadt's TrustCourt of Appeals for the Second Circuit · 1942
- Jordan v. CommissionerUnited States Tax Court · 1973
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3Cited by8 opinions
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- Calloway v. CommissionerUnited States Tax Court · 2010
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