Fred H. Lenway & Co. v. Commissioner
United States Tax Court
Petitioner was a party to a transaction involving the revamping of the capital structure of X corporation, in which petitioner held a 55-percent stock interest.
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Petitioner was a party to a transaction involving the revamping of the capital structure of X corporation, in which petitioner held a 55-percent stock interest. As part of that transaction, petitioner contributed some of its shares to the capital of X. It also warranted the net worth of X as of a given date to a third party, which made a substantial investment in X. Petitioner's obligation under the warranty could be satisfied by transferring additional amounts of its shares to X. Petitioner gave up all of its remaining shares of X in satisfaction of the warranty. Held, petitioner's loss in…
1Opinion of the Court
Tannenwald, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax for its fiscal year ended January 31,1968, in the amount of $115,705. This deficiency occurred as a result of the disallowance of an ordinary loss deduction claimed by petitioner for its fiscal year ended January 31, 1971, and carried back to its fiscal year ended January 31,1968.
The issue to be determined is the deductible character of certain losses sustained by petitioner during its fiscal year 1971.
FINDINGS OF FACT
Some facts have been stipulated and are so found.
Petitioner Fred H. Lenway & Co., Inc.,…
Also in this document: Dissent.
2Cases cited20 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- United States v. DavisSupreme Court of the United States · 1962
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Fox v. CommissionerUnited States Tax Court · 1974
15 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Freeland v. CommissionerUnited States Tax Court · 1980
- Fred H. Lenway & Co. v. CommissionerUnited States Tax Court · 1978
- Freeland v. CommissionerUnited States Tax Court · 1980