Rietzke v. Commissioner
United States Tax Court
Petitioner was an officer of L Corporation in which he had a substantial proprietary interest by virtue of his ownership of 45 percent of the stock of C Corporation which in turn owned 66 percent of the stock of L Corporation. His duties included raising cash and obtaining financing for L Corporation. Petitioner individually endorsed the obligations of the corporation.
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Petitioner was an officer of L Corporation in which he had a substantial proprietary interest by virtue of his ownership of 45 percent of the stock of C Corporation which in turn owned 66 percent of the stock of L Corporation. His duties included raising cash and obtaining financing for L Corporation. Petitioner individually endorsed the obligations of the corporation. After the corporation filed a voluntary petition in bankruptcy, petitioner incurred losses by paying one corporate obligation to which he thereby became subrogated and settling others, upon which latter obligations the…
1Opinion of the Court
OPINION
Keen, Judge:
Issue 1
The primary question to be decided is whether the payments made by petitioner to Commerce, Fidelity, and National Bank give rise to deductions for losses incurred in a trade or business or losses incurred in a transaction entered into for profit though not connected with a trade or business,1 or expenses incurred for the production of income.2 or whether they constitute business bad debt deductions, or are deductible only as nonbusiness bad debts.3
Respondent contends that the payments give rise to bad debt deductions instead of losses deductible under other…
2Cases cited14 opinions
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Whipple v. CommissionerSupreme Court of the United States · 1963
- Putnam v. CommissionerSupreme Court of the United States · 1956
- W. Horace Williams, Sr., and Viola Bloch Williams v. United StatesCourt of Appeals for the Fifth Circuit · 1957
- John M. Trent and Lisa M. Trent v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1961
9 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Commissioner of Internal Revenue v. D. J. ConditCourt of Appeals for the Tenth Circuit · 1964
- Biehl v. Comm'rUnited States Tax Court · 2002
- In Re George Franklin Vaughan, Jr., Debtor. United States of America v. George Franklin Vaughan, Jr.Court of Appeals for the Sixth Circuit · 1983
- Hoffman v. United StatesDistrict Court, D. Oregon · 1967
- Stratmore v. United StatesDistrict Court, D. New Jersey · 1968
5 more not listed; retrieve them via the Exa API.