Edward Katzinger Co. v. Commissioner
United States Board of Tax Appeals
DEDUCTIONS - AFFILIATED CORPORATIONS. - Where two affiliated corporations have been engaged in a series of continuous transactions resulting in a debtor-creditor relationship, and the debtor has sustained losses which have been deducted from income on a consolidated return, the creditor thereafter may not claim another deduction, either by way of worthless stock or had debt, which is traceable directly or indirectly to the losses deducted on the consolidated return, except…
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DEDUCTIONS - AFFILIATED CORPORATIONS. - Where two affiliated corporations have been engaged in a series of continuous transactions resulting in a debtor-creditor relationship, and the debtor has sustained losses which have been deducted from income on a consolidated return, the creditor thereafter may not claim another deduction, either by way of worthless stock or had debt, which is traceable directly or indirectly to the losses deducted on the consolidated return, except to the extent that the later losses exceed the earlier.
1Opinion of the Court
*536OPINION.
Murdoch:
The respondent does not deny that the petitioner actually sustained a loss in the taxable year of $29,950.06. He contends that this entire loss was a loss of the investment of the petitioner in the stock of Bruce-Hunt and was not divisible into an investment of $1,000 in the stock and a bad debt of $28,950.06. He reasons that no part of this loss is deductible because it comes within section 112 (b) (6) of the Revenue Act of 1936, which provides that “No gain or loss shall be recognized upon the receipt by a corporation of property distributed in complete liquidation of…
2Cases cited1 opinion
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
3Cited by19 opinions
- Maloney v. SpencerCourt of Appeals for the Ninth Circuit · 1949
- Van Clief v. HelveringCourt of Appeals for the D.C. Circuit · 1943
- Malone & Hyde, Inc. v. CommissionerUnited States Tax Court · 1968
- Duquesne Light Holdings Inc v. Commissioner of Internal RevenCourt of Appeals for the Third Circuit · 2017
- Fairbanks, Morse & Co. v. HarrisonDistrict Court, N.D. Illinois · 1945
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