Brubaker v. Commissioner
United States Tax Court
Held, that a transaction between a corporation and its principal stockholder was a sale of debts owed by another stockholder and not a compromise of such debts with the debtor, and any loss sustained was a capital loss which is not deductible in the absence of capital gains. Secs. 23 (g) (1) and 117 (d) (1), I. R. C. 1939.
1Opinion of the Court
Civilla J. Brubaker, Transferee of Assets of Joliet Properties, Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
Brubaker v. Commissioner
Docket No. 57621
United States Tax Court
28 T.C. 1281; 1957 U.S. Tax Ct. LEXIS 74;
September 30, 1957, Filed
Decision will be entered under Rule 50.
Held, that a transaction between a corporation and its principal stockholder was a sale of debts owed by another stockholder and not a compromise of such debts with the debtor, and any loss sustained was a capital loss which is not deductible in the absence of capital gains. Secs. 23 (g) (1) and 117…
2Cases cited5 opinions
- O'Bryan Bros. v. COMMISSIONER OF INTERNAL REVENUECourt of Appeals for the Sixth Circuit · 1942
- American Felt Co. v. BurnetCourt of Appeals for the D.C. Circuit · 1932
- Rockford Varnish Co. v. CommissionerUnited States Tax Court · 1947
- Graham Mill & Elevator Co. v. ThomasCourt of Appeals for the Fifth Circuit · 1945
- Brubaker v. CommissionerUnited States Tax Court · 1957