Klein v. Commissioner
United States Tax Court
Petitioner Sam Klein was a creditor/shareholder of a subch. S corporation which was completely liquidated, thereby closing its taxable year, and which had a net operating loss for that year. Held, his share of the net operating loss should be taken into account before reduction of his basis in his equity and stock by the amounts distributed to him in complete liquidation on account of his creditor/ shareholder status. Abdalla v. Commissioner, 69 T.C. 697 (1978), applied.
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined a deficiency in petitioners’ income tax of $26,782.29 for 1972. After concessions, the sole issue to be decided is the extent to which distributions in the course of a complete liquidation of an electing subchapter S corporation reduce a shareholder/creditor’s basis in the corporation for computing his net operating loss deduction limitation defined in section 1374(c)(2).1
This case was submitted fully stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure.
At the time the petition was filed, petitioners were married and resided…
2Cases cited10 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Fribourg Navigation Co. v. CommissionerSupreme Court of the United States · 1966
- Easson v. CommissionerUnited States Tax Court · 1960
- Jacob Abdalla and Mary T. Abdalla v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1981
- Dan E. Mason and Beverly R. Mason v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
5 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Herman v. CommissionerUnited States Tax Court · 1985
- Schlesinger v. United States (In Re Schlesinger)United States Bankruptcy Court, E.D. Pennsylvania · 2002
- Shelton v. CommissionerUnited States Tax Court · 1995
- Uri v. CommissionerUnited States Tax Court · 1989
- Herman v. CommissionerUnited States Tax Court · 1985
3 more not listed; retrieve them via the Exa API.