Messina v. Comm'r
United States Tax Court
As of the 2012 tax year, M and K together owned 80% of S1, an S corporation, which owned Q, a qualified subchapter S subsidiary. Q was the borrower under a loan from an unrelated entity. M and K formed S2, a wholly owned S corporation, to acquire the loan.
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As of the 2012 tax year, M and K together owned 80% of S1, an S corporation, which owned Q, a qualified subchapter S subsidiary. Q was the borrower under a loan from an unrelated entity. M and K formed S2, a wholly owned S corporation, to acquire the loan. M and K contend that S2 should be disregarded for I.R.C. sec. 1366(d)(1)(B) purposes and the loan deemed indebtedness of S1 to them, allowing them to increase their bases in S1's indebtedness and take into account its pass-through losses. R maintains that S2's separate corporate existence should be respected and the loan not be treated as…
1Opinion of the Court
DANA D. MESSINA AND NANCY G. MESSINA, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent;
KYLE R. KIRKLAND AND STEPHANIE LAYNE, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Messina v. Comm'r
Docket Nos. 25510-15, 25567-15.
United States Tax Court
T.C. Memo 2017-213; 2017 Tax Ct. Memo LEXIS 214;
October 30, 2017, Filed
Decisions will be entered for respondent.
As of the 2012 tax year, M and K together owned 80% of S1, an S corporation, which owned Q, a qualified subchapter S subsidiary. Q was the borrower under a loan from an unrelated entity. M and K formed S2, a wholly owned…
2Cases cited35 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. National Alfalfa Dehydrating & Milling Co.Supreme Court of the United States · 1974
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
- Helvering v. GregoryCourt of Appeals for the Second Circuit · 1934
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