Saviano v. Commissioner
United States Tax Court
In 1978, petitioner, a cash basis taxpayer and airline pilot, acquired a gold claim in Panama through a tax shelter called "Gold For Tax Dollars." The shelter promoter, International Monetary Exchange (IME), as petitioner's agent, paid development expenses with funds of which petitioner deposited part with IME and borrowed the balance from IME on a nonrecourse obligation.
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In 1978, petitioner, a cash basis taxpayer and airline pilot, acquired a gold claim in Panama through a tax shelter called "Gold For Tax Dollars." The shelter promoter, International Monetary Exchange (IME), as petitioner's agent, paid development expenses with funds of which petitioner deposited part with IME and borrowed the balance from IME on a nonrecourse obligation. Petitioner deducted the full amount of the expense under sec. 616(a), IRC 1954. Held, repayment of the nonrecourse obligation was so contingent that no debt was created, and the deduction is disallowed to the extent thereof.…
1Opinion of the Court
OPINION
Shields, Judge-.
Each party has filed a motion for partial summary judgment with respect to the following issues:(1) Whether or not a nonrecourse obligation undertaken by the petitioner in 1978 is too contingent to be treated as a bona fide indebtedness for tax purposes.(2) Whether or not petitioner is at risk, under section 465,1 respecting an amount received in 1979 from the purported sale of an option.(3) Whether or not the purported option granted in 1979 is to be treated as a true option for tax purposes.
The parties have filed under Rule 121,2 affidavits in support of their…
2Cases cited43 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Burnet v. LoganSupreme Court of the United States · 1931
- Eckert v. BurnetSupreme Court of the United States · 1931
- Helvering v. PriceSupreme Court of the United States · 1940
- Don E. Williams Co. v. CommissionerSupreme Court of the United States · 1977
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3Cited by105 opinions
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