Delta Plastics Corp. v. Commissioner
United States Tax Court
Held, having failed to prove that a debtor-creditor relationship existed between a former shareholder and itself, petitioner's claim to a bad debt deduction under sec. 166, I.R.C. 1954, cannot be sustained.
1Opinion of the Court
opinion
Hoyt, Judge:
Respondent determined a deficiency in petitioner’s income tax for the taxable year ended February 28, 1965, in the amount of $24,856.62.
The sole issue presented for our decision is whether a bona fide debtor-creditor relationship was created between a certain party and petitioner so as to justify a subsequent $77,000 bad debt claim as part of the net operating loss applied by petitioner against its taxable income for the year ended February 28,1965.
The facts have been fully stipulated. The stipulation of facts and exhibits thereto are incorporated herein by this reference.
At…
2Cases cited5 opinions
- Clark v. CommissionerUnited States Tax Court · 1952
- Clark v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1953
- Kaplan v. CommissionerUnited States Tax Court · 1965
- Grossman v. CommissionerUnited States Board of Tax Appeals · 1927
- Kentucky Rock Asphalt Co. v. HelburnCourt of Appeals for the Sixth Circuit · 1940
3Cited by20 opinions
- Professional Services v. CommissionerUnited States Tax Court · 1982
- Malinowski v. CommissionerUnited States Tax Court · 1979
- Computervision Int'l Corp. v. CommissionerUnited States Tax Court · 1996
- Curcio v. Comm'rUnited States Tax Court · 2010
- Brown Corp. of Ionia, Inc. v. CommissionerUnited States Tax Court · 1982
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