Moore v. Commissioner
United States Tax Court
T purchased at a purported price of $ 384,000 a tax shelter from U.S. Distributor structured as an exclusive territorial franchise or distributorship to sell gemstones and items of jewelry to be supplied by American Gold. T was one of about 1,000 purchasers of similar exclusive territorial franchises from U.S. Distributor. The minimum price for such an exclusive territorial franchise was purportedly $ 240,000. American Gold and U.S.
Read the full summary
T purchased at a purported price of $ 384,000 a tax shelter from U.S. Distributor structured as an exclusive territorial franchise or distributorship to sell gemstones and items of jewelry to be supplied by American Gold. T was one of about 1,000 purchasers of similar exclusive territorial franchises from U.S. Distributor. The minimum price for such an exclusive territorial franchise was purportedly $ 240,000. American Gold and U.S. Distributor were corporations newly created by tax shelter promoters, and had no goodwill. American Gold transferred to U.S. Distributor the exclusive right to…
1Opinion of the Court
Raum, Judge:
The Commissioner determined deficiencies in petitioner’s Federal income taxes for 1979 and 1980 in the amounts of $11,845 and $7,618, respectively. The principal substantive issue for decision is whether the Commissioner erred in disallowing losses with respect to petitioner’s purported activity as an "exclusive territorial distributor” of gemstones.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and attached exhibits are incorporated herein by reference.
Petitioner was a resident of Glendale, California, when he filed his petition herein.
Petitioner…
2Cases cited16 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Brannen v. CommissionerUnited States Tax Court · 1982
- Michael L. Rockwell, and Regina Rockwell v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975
- Estate of Charles T. Franklin, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1976
- Siegel v. CommissionerUnited States Tax Court · 1982
11 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Rose v. CommissionerUnited States Tax Court · 1987
- Patin v. CommissionerUnited States Tax Court · 1987
- Packard v. CommissionerUnited States Tax Court · 1985
- John F. Jackson, Jr., and Shirley Jackson v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1992
- First National Bank of Chicago v. United StatesCourt of Appeals for the First Circuit · 1986
13 more not listed; retrieve them via the Exa API.