Blum v. Commissioner
United States Tax Court
The allowable portion of a net operating loss properly deductible by a shareholder in an electing small business corporation does not include corporate debts to third parties which have been guaranteed by the shareholder. The guaranteed debt was not indebtedness of the corporation to the shareholder and was not in substance a loan from the third-party lender to the shareholder followed by the shareholder's equity contribution to the corporation.
1Opinion of the Court
opinion
Fay, Judge:
Respondent determined a deficiency in petitioner’s income tax for tbe taxable year 1968 in tbe amount of $8,039.49. A certain concession having been made, tbe sole issue remaining for decision is tbe amount of corporate net operating losses deductible by petitioner under section 1374.1
All of tbe facts bave been stipulated. Tbe stipulation of facts and exhibits attached thereto are incorporated herein by this reference and are adopted as our findings.
Peter E. Blum (petitioner) was a resident of Atlanta, Ga., at tbe time of tbe filing of tbe petition herein. Petitioner filed…
2Cases cited22 opinions
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- John v. Rowan v. United StatesCourt of Appeals for the Fifth Circuit · 1955
- Samuel Pollack and Annie Pollack v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1968
- Pollack v. CommissionerUnited States Tax Court · 1966
17 more not listed; retrieve them via the Exa API.
3Cited by45 opinions
- Tokarski v. CommissionerUnited States Tax Court · 1986
- Kronish v. CommissionerUnited States Tax Court · 1988
- Estate of Leavitt v. CommissionerUnited States Tax Court · 1988
- Edward M. Selfe and Jane B. Selfe v. United StatesCourt of Appeals for the Eleventh Circuit · 1985
- Rebecca Jo Reser v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1997
40 more not listed; retrieve them via the Exa API.