Azar Nut Co. v. Commissioner
United States Tax Court
Pursuant to an employment contract, petitioner purchased for full market value ($ 285,000) a house owned by a terminated executive employee. Petitioner immediately tried to resell the house but was unable to do so for 2 years, at which time the house was sold for a loss of $ 111,366. Petitioner claimed the loss as an ordinary loss. Respondent disallowed it as an ordinary loss because the house was a capital asset.
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Pursuant to an employment contract, petitioner purchased for full market value ($ 285,000) a house owned by a terminated executive employee. Petitioner immediately tried to resell the house but was unable to do so for 2 years, at which time the house was sold for a loss of $ 111,366. Petitioner claimed the loss as an ordinary loss. Respondent disallowed it as an ordinary loss because the house was a capital asset. Held, petitioner's loss on the resale of the house was a capital loss, not deductible as an ordinary loss. Arkansas Best Corp. v. Commissioner, 485 U.S. 212 (1988).
1Opinion of the Court
Azar Nut Co., Petitioner v. Commissioner of Internal Revenue, Respondent
Azar Nut Co. v. Commissioner
Docket No. 10416-88
United States Tax Court
94 T.C. 455; 1990 U.S. Tax Ct. LEXIS 26; 94 T.C. No. 26;
March 20, 1990March 20, 1990, Filed
Decision will be entered for the respondent.
Pursuant to an employment contract, petitioner purchased for full market value ($ 285,000) a house owned by a terminated executive employee. Petitioner immediately tried to resell the house but was unable to do so for 2 years, at which time the house was sold for a loss of $ 111,366. Petitioner claimed the loss as an…
2Cases cited12 opinions
- Commissioner v. TellierSupreme Court of the United States · 1966
- Enoch v. CommissionerUnited States Tax Court · 1972
- T. B. Harms Company v. Edward Eliscu and Ross Jungnickel, Inc.Court of Appeals for the Second Circuit · 1964
- Arkansas Best Corp. v. CommissionerSupreme Court of the United States · 1988
- Commissioner of Internal Revenue v. The Bagley & Sewall Co.Court of Appeals for the Second Circuit · 1955
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