Parker v. Commissioner
United States Board of Tax Appeals
1. Decedent made loans or advances for several years prior to 1927 to a corporation in which he owned a controlling interest, and in that year was allowed a deduction for a loss on that account which was unabsorbed by income of that year.
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1. Decedent made loans or advances for several years prior to 1927 to a corporation in which he owned a controlling interest, and in that year was allowed a deduction for a loss on that account which was unabsorbed by income of that year. Held, the unabsorbed loss is not a net loss that may be carried forward to the succeeding year as it was not sustained in a trade or business regularly carried on by decedent. 2. The partnership of George D. Parker Co. was composed of five persons, decedent having a one-fourth interest only, as determined in 30 B.T.A. 1231. Held, respondent erred in…
1Opinion of the Court
*653OPINION.
Sea well :(1) The first error assigned is that the respondent failed to allow the decedent to carry forward and deduct from 1928 income an alleged net loss of $55,231.83 sustained by the decedent in his business in 1927.
It is not disputed that in 1927 and prior years (1920-1927, inclusive) the decedent, George D. Parker, advanced to the Parker Lumber & Box Co. $192,843.34, which amount in 1927 he wrote off his books as a worthless or bad debt and claimed the same as a deduction in his return for the year 1927, which was allowed by the respondent. It is alleged in the amended petition…
2Cases cited4 opinions
- Burnet v. ClarkSupreme Court of the United States · 1932
- Pereira v. PereiraCalifornia Supreme Court · 1909
- United States v. MalcolmSupreme Court of the United States · 1931
- Estate of GoldCalifornia Supreme Court · 1915
3Cited by11 opinions
- A. H. Karpe v. The United States. The United States (Cross-Complainant) v. Birda M. Viera (Cross-Defendant)United States Court of Claims · 1964
- Fowler v. CommissionerUnited States Tax Court · 1967
- Fleming v. CommissionerUnited States Tax Court · 1984
- Wilson v. CommissionerUnited States Tax Court · 1943
- Berry v. Comm'rUnited States Tax Court · 1956
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