Luton v. Commissioner
United States Tax Court
Petitioner claims a net operating loss deduction carry-back for the year 1946. Held, petitioner sustained a net operating loss as defined by section 122 (a) of the Code in the amount of $ 3,667.19 for the year 1948. The loss realized by petitioner upon the sale of assets used in his business may not be included in the statutory net operating loss. Joseph Sic, 10 T. C. 1096, affd. 177 F. 2d 469, certiorari denied 339 U.S. 913, followed.
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Petitioner claims a net operating loss deduction carry-back for the year 1946. Held, petitioner sustained a net operating loss as defined by section 122 (a) of the Code in the amount of $ 3,667.19 for the year 1948. The loss realized by petitioner upon the sale of assets used in his business may not be included in the statutory net operating loss. Joseph Sic, 10 T. C. 1096, affd. 177 F. 2d 469, certiorari denied 339 U.S. 913, followed. Held, further, in computing the statutory net operating loss petitioner may first use the nonbusiness losses to offset his nonbusiness income, and when…
1Opinion of the Court
OPINION.
Black, Judge:
In summary, the pertinent facts are these, that petitioner during 1948 received income and sustained losses as follows:
Item Amount(1) Salary and interest income-$4,441.35(2) Loss upon the sale of equipment used in the operation of the restaurant- 8, 830. 70(3) Loss in the operation of a restaurant- 3, 667.19
The first issue is whether the loss upon the sale of the equipment used in the operation of the restaurant in the amount, of $8,830.70 is a part of petitioner’s net operating loss within the meaning of section 122 (a) of the Code, which provision is set forth in the…
2Cases cited2 opinions
- Sic v. CommissionerUnited States Tax Court · 1948
- Sic v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1949
3Cited by24 opinions
- Lagreide v. CommissionerUnited States Tax Court · 1954
- Edward Folker v. James W. Johnson, Individually and as a Former Collector of Internal RevenueCourt of Appeals for the Second Circuit · 1956
- Burns v. CommissionerUnited States Tax Court · 1954
- Goble v. CommissionerUnited States Tax Court · 1954
- CLuck v. CommissionerUnited States Tax Court · 1957
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