Vietzke v. Commissioner
United States Tax Court
In 1956 petitioner, a physician, paid $ 25,000 for stock subscription to a life insurance corporation which was being formed by Paterson, Zak, and others. During the formative period Paterson and Zak withdrew large amounts of subscribed funds. In 1956 the Indiana insurance commissioner issued an order halting the further sale of the corporation's securities. Petitioner deducted $ 25,000 on his 1956 income tax return as a theft loss.
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In 1956 petitioner, a physician, paid $ 25,000 for stock subscription to a life insurance corporation which was being formed by Paterson, Zak, and others. During the formative period Paterson and Zak withdrew large amounts of subscribed funds. In 1956 the Indiana insurance commissioner issued an order halting the further sale of the corporation's securities. Petitioner deducted $ 25,000 on his 1956 income tax return as a theft loss. In 1957 the corporation was put into receivership, and in 1961 petitioner was notified that about $ 2,000 was available to him as a result of the receivership.…
1Opinion of the Court
Muleoney, Judge:
This opinion supersedes a previous opinion iiled September 29, 1961, and withdrawn December 7,1961.
The respondent determined a deficiency in petitioners’ income tax for the year 1956 of $12,276.45. The question for decision is whether $25,000 paid for 10,000 shares of common stock issued by Pan Protective Life Insurance Co., Inc., is deductible as a theft loss in 1956.
FINDINGS OF FACT.
Some of the facts have been stipulated and they are found accordingly.
Petitioners Paul C. F. and Alice Vietzke are husband and wife and live in Valparaiso, Indiana. They filed a joint return on…
2Cases cited5 opinions
- Edwards v. BrombergCourt of Appeals for the Fifth Circuit · 1956
- Monteleone v. CommissionerUnited States Tax Court · 1960
- Alison v. United StatesSupreme Court of the United States · 1952
- Krietenstein v. RobinsonIndiana Court of Appeals · 1955
- Kennedy v. United StatesDistrict Court, D. Rhode Island · 1952
3Cited by39 opinions
- Paine v. CommissionerUnited States Tax Court · 1975
- Weingarten v. CommissionerUnited States Tax Court · 1962
- Gerstell v. CommissionerUnited States Tax Court · 1966
- United States v. ElsassDistrict Court, S.D. Ohio · 2013
- Skolnik v. CommissionerUnited States Tax Court · 1971
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