Royal Oak Apartments, Inc. v. Commissioner
United States Tax Court
Petitioner, a cash basis taxpayer, made excessive liquidating distributions to its shareholders retaining insufficient assets to pay a deductible State excise tax. On demand being made, the shareholders sent petitioner their checks payable directly to the State. Held: An obligation running from shareholders to petitioner existed when the tax was paid. Petitioner paid the tax in form and in substance and is entitled to the deduction.
1Opinion of the Court
OPINION
Forrester, Judge:
The year at issue before us is petitioner’s fiscal year ending March 31, 1958. The sole remaining issue before us involves a claimed carryback net operating loss deduction to such year from petitioner’s fiscal year ending March 31,1961. The claimed loss item during fiscal 1961 is a corporation excise tax in the amount of $17,653.87 which was paid to the State of Tennessee during such year, but respondent contends it is not deductible by this cash basis petitioner because not paid by it.
Respondent determined deficiencies in petitioner’s income taxes for fiscal 1958 in…
2Cases cited12 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- McAdams v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1952
- Young v. FitchCourt of Appeals of Kentucky · 1918
- Kniffen v. CommissionerUnited States Tax Court · 1962
7 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Graf v. CommissionerUnited States Tax Court · 1983
- Focht v. CommissionerUnited States Tax Court · 1977
- Focht v. CommissionerUnited States Tax Court · 1977
- Graf v. CommissionerUnited States Tax Court · 1983
- Peters v. CommissionerUnited States Tax Court · 1970
3 more not listed; retrieve them via the Exa API.