Baker v. Commissioner
United States Tax Court
T received interest-free loans from a family corporation of which he was an officer-stockholder. Held: T did not realize any taxable income based upon his use or enjoyment of such tax-free loans. Stare decisis requires that Dean v. Commissioner, 35 T.C. 1083 (1961), be followed in the circumstances of this issue, nor is Dean inapplicable on this record by reason of T's investments in federally tax-exempt securities.
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined deficiencies in petitioners’ income taxes as follows:
Year Deficiency
1973 $1,575
1974 3,462
1975 1,976
After concessions, the only issue presented by this fully stipulated case is whether Jack Baker, the husband petitioner, realized taxable income as a consequence of interest-free loans from Sue Brett, Inc., of which he is the president. He, his wife, and their children own all the issued and outstanding common stock of the corporation.
At the time of the filing of their petition herein, petitioners were New York residents.
During the years in issue,…
2Cases cited13 opinions
- Dean v. CommissionerUnited States Tax Court · 1961
- Greenspun v. CommissionerUnited States Tax Court · 1979
- Albert Suttle and Grace E. Suttle v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1980
- Zager v. CommissionerUnited States Tax Court · 1979
- New Mexico Bancorporation & Subsidiaries v. CommissionerUnited States Tax Court · 1980
8 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Commissioner of Internal Revenue v. Herman M. Greenspun and Barbara J. GreenspunCourt of Appeals for the Ninth Circuit · 1982
- Jack and Florence Baker v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1982
- Estate of Norris v. CommissionerUnited States Tax Court · 1981
- Baker v. CommissionerUnited States Tax Court · 1980
- Kretschmer v. CommissionerUnited States Tax Court · 1989
3 more not listed; retrieve them via the Exa API.