Cunningham v. Commissioner
United States Tax Court
Deduction -- Net Operating Loss -- Income not Derived from Business -- Joint Return -- Wife's Salary -- Sections 23 (s) and 122 (d) (5). -- A wife's salary from her husband's business reported on a joint return is not "gross income not derived from such trade or business" in computing the net operating loss of the business under section 122 and the applicable sections of Regulations 111, and can not be offset by nonbusiness deductions.
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined a deficiency of $2,075.06 in income tax of the petitioner for 1947. The only issue is whether the salary of the petitioner’s wife for 1949 was erroneously classified as business income rather than as “income not derived from such trade or business” which could be offset by nonbusiness deductions in computing the net operating loss deduction' based upon a 1949 net operating loss. The facts have been presented by a stipulation which is adopted as the findings of fact.
The petitioner filed his separate individual return for 1947 with the…
2Cited by9 opinions
- Lagreide v. CommissionerUnited States Tax Court · 1954
- Weinstein v. CommissionerUnited States Tax Court · 1957
- Hayman v. CommissionerUnited States Tax Court · 1968
- Folker v. JohnsonDistrict Court, D. New York · 1955
- Cunningham v. CommissionerUnited States Tax Court · 1953
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