Ewing v. Commissioner
United States Tax Court
1. The petitioner was not engaged with her controlled corporation, The Ballet Theatre, Inc., in a joint venture for the production of ballet, and her primary motive or intent in advancing funds to the corporation during the years in question was not profit.
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1. The petitioner was not engaged with her controlled corporation, The Ballet Theatre, Inc., in a joint venture for the production of ballet, and her primary motive or intent in advancing funds to the corporation during the years in question was not profit. Held, petitioner's losses on these advances are not deductible under section 23 (e) (2), Internal Revenue Code, as losses incurred in a transaction entered into for profit. 2. The corporation's repayment of the advances received from the petitioner was subject to a contingency that did not occur, and during the years in question the…
1Opinion of the Court
OPINION.
Arundell, Judge:
The basic question before us is the deductibility of unrecovered sums advanced by the petitioner to The Ballet Theatre, Inc., her controlled corporation,, for the production of ballet. The sum of $203,789.81,6 the amount in question for the year 1942, was advanced by the petitioner indirectly through High Time Promotions, Inc., her wholly owned corporation, and the sum of $140,630.22, the amount in question for the year 1943, was advanced by the petitioner directly. Under the terms of the agreements with The Ballet Theatre, Inc., the right to the recovery of these sums…
2Cases cited18 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Place v. CommissionerUnited States Tax Court · 1951
- Parker v. County of Los AngelesSupreme Court of the United States · 1949
- Orvis v. . CurtissNew York Court of Appeals · 1899
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3Cited by4 opinions
- Hans Zimmerman and Clara Zimmerman, Apellants v. United States of America and District Director of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Cappuccilli v. CommissionerUnited States Tax Court · 1980
- Ewing v. CommissionerUnited States Tax Court · 1956
- Ewing v. CommissionerUnited States Tax Court · 1953