Brenner v. Commissioner
United States Tax Court
During 1963, Brenner, an account executive in a stock brokerage firm, Ira Haupt, borrowed funds (about $ 180,000) from certain customers to enable him to acquire a 1-percent partnership interest in the firm. Shortly thereafter Ira Haupt failed, and as a general partner petitioner became jointly and severally liable for its debts.
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During 1963, Brenner, an account executive in a stock brokerage firm, Ira Haupt, borrowed funds (about $ 180,000) from certain customers to enable him to acquire a 1-percent partnership interest in the firm. Shortly thereafter Ira Haupt failed, and as a general partner petitioner became jointly and severally liable for its debts. He obtained another stock brokerage job and orally promised the senior partner of that firm to repay the customers who had loaned him the funds to acquire his partnership interest in Ira Haupt. He was allowed a net operating loss of $ 559,468.11 for 1963, stemming…
1Opinion of the Court
Featherston, Judge:
Respondent determined a deficiency in the amount of $42,749.30 in petitioners’ Federal income tax for 1968. The issue to be decided is whether petitioner Howard Brenner’s repayments of loans, after being discharged from all debts in a bankruptcy proceeding, constitute ordinary and necessary expenses, deductible under section 162(a)1 and includable in a net operating loss carryover under section 172.
FINDINGS OF FACT
At the time their petition was filed with this Court, petitioners Howard M. Brenner (hereinafter petitioner or Brenner) and Peggy Brenner were legal residents of…
2Cases cited20 opinions
- United States v. Skelly Oil Co.Supreme Court of the United States · 1969
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- Zavelo v. ReevesSupreme Court of the United States · 1913
- Lohrke v. CommissionerUnited States Tax Court · 1967
- Dinardo v. CommissionerUnited States Tax Court · 1954
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3Cited by15 opinions
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- Schrott v. CommissionerUnited States Tax Court · 1989
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