Nichols v. Commissioner
United States Tax Court
Held, petitioners have shown on this record by clear evidence that they paid out sums of money to enter into certain tax-avoidance schemes by reason of misrepresentations of M. Eli Livingstone, that they relied upon those misrepresentations and would not have paid out such sums otherwise, that they were thus swindled by Livingstone, and that they are accordingly entitled to deductions for theft losses in 1959, the year in which Livingstone's fraud was discovered by them.
Read the full summary
Held, petitioners have shown on this record by clear evidence that they paid out sums of money to enter into certain tax-avoidance schemes by reason of misrepresentations of M. Eli Livingstone, that they relied upon those misrepresentations and would not have paid out such sums otherwise, that they were thus swindled by Livingstone, and that they are accordingly entitled to deductions for theft losses in 1959, the year in which Livingstone's fraud was discovered by them. Sec. 165(a), (c)(3), and (e), I.R.C. 1954.
1Opinion of the Court
The Commissioner determined deficiencies against petitioners for each of the years 1956 through 1959. As a result of various concessions the only issue for decision is whether petitioners sustained a theft loss in 1959.
FINDINGS OF FACT
Perry A. Nichols and Inez Nichols, William C. and Elaine B. Gaither, Walter H., Jr., and Ethel K. Beckham, and William C. and Phoebe Diehl Green were husbands and wives, respectively, residing in Miami, Fla., during the taxable years 1956 through 1959. William S. and Jean Frates were husband and wife, residing in Miami, Fla., during the taxable years 1956…
2Cases cited16 opinions
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Goodstein v. CommissionerUnited States Tax Court · 1958
- Edwards v. BrombergCourt of Appeals for the Fifth Circuit · 1956
- Joseph H. Bridges and Lillier J. Bridges v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1963
- Bridges v. CommissionerUnited States Tax Court · 1963
11 more not listed; retrieve them via the Exa API.
3Cited by43 opinions
- Luman v. CommissionerUnited States Tax Court · 1982
- Paine v. CommissionerUnited States Tax Court · 1975
- Rosenfeld v. CommissionerUnited States Tax Court · 1984
- Hope v. CommissionerUnited States Tax Court · 1971
- West v. CommissionerUnited States Tax Court · 1987
38 more not listed; retrieve them via the Exa API.