Thomas v. Commissioner
United States Tax Court
Moneys advanced by petitioner to a corporation in 1938 and early 1939 constituted a capital investment in and not a loan to that corporation. Since this investment became worthless in the tax year the loss thus sustained is a capital loss, the deductibility of which is limited by section 23 (g) (1) and (2) of the Revenue Act of 1938.
1Opinion of the Court
Joseph B. Thomas, Petitioner, v. Commissioner of Internal Revenue, Respondent
Thomas v. Commissioner
Docket No. 110986
United States Tax Court
2 T.C. 193; 1943 U.S. Tax Ct. LEXIS 131;
June 22, 1943, Promulgated
Decision will be entered under Rule 50.
Moneys advanced by petitioner to a corporation in 1938 and early 1939 constituted a capital investment in and not a loan to that corporation. Since this investment became worthless in the tax year the loss thus sustained is a capital loss, the deductibility of which is limited by section 23 (g) (1) and (2) of the Revenue Act of 1938.
I. Bernard Halpern,…
2Cases cited4 opinions
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Bank of United States v. DandridgeSupreme Court of the United States · 1827
- Thomas v. CommissionerUnited States Tax Court · 1943
- In re McLean-Bowman Co.District Court, M.D. Pennsylvania · 1905