Combrink v. Comm'r
United States Tax Court
P owned 100 percent of the stock in two corporations, C and L. During 1995 and 1996, C made a series of remittances totaling $ 89,728.73 which were treated as loans from C to P, followed by subsequent loans from P to L. P also lent additional funds to L. Thereafter, in late 1996, promissory notes payable by L to P in the amount of $ 252,481.03 were converted into a single promissory note of $ 77,481.03 and additional paid-in capital of $ 175,000.00. Then, in December of…
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P owned 100 percent of the stock in two corporations, C and L. During 1995 and 1996, C made a series of remittances totaling $ 89,728.73 which were treated as loans from C to P, followed by subsequent loans from P to L. P also lent additional funds to L. Thereafter, in late 1996, promissory notes payable by L to P in the amount of $ 252,481.03 were converted into a single promissory note of $ 77,481.03 and additional paid-in capital of $ 175,000.00. Then, in December of 1996, P transferred his shares in L to C in exchange for release from the $ 174,133.20 liability he had previously incurred…
1Opinion of the Court
OPINION
NlMS, Judge:
Respondent determined a Federal income tax deficiency for petitioners’ 1996 taxable year in the amount of $56,449. The principal issue to be decided is the proper application of section 304, which could in turn require application of sections 301 and 302, to the facts of this case. Additional adjustments made in the statutory notice of deficiency are computational in nature and will be resolved by our holding herein.'
Unless otherwise indicated, all section references are to sections of the Internal Revenue Code in effect for the year at issue, and all Rule references are to…
2Cases cited4 opinions
- United States v. DavisSupreme Court of the United States · 1970
- Bhada v. CommissionerUnited States Tax Court · 1987
- Rohinton K. Bhada, Patricia A. Bhada v. Commissioner, Internal Revenue ServiceCourt of Appeals for the Sixth Circuit · 1989
- Edward J. And Janice W. Caamano v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1989
3Cited by4 opinions
- COMBRINK v. COMMISSIONER OF INTERNAL REVENUEUnited States Tax Court · 2001
- Combrink v. Comm'rUnited States Tax Court · 2001
- Combrink v. CommissionerUnited States Tax Court · 2001
- Gary D. and Lindy H. Combrink v. CommissionerUnited States Tax Court · 2001