Harrison v. Commissioner
United States Tax Court
Petitioners, through their subch. S corporation, Twin Lakes, owned real estate in Colorado. The corporation also owned a note with a face value of $ 300,000 (basis $ 220,000) cosigned by Mt. Elbert Plamor Ranch, Inc., and Mason. Mason was the 100-percent shareholder of Mt. Elbert, and his liability on the note was limited to the value of the capital stock owned by him in Mt. Elbert.
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Petitioners, through their subch. S corporation, Twin Lakes, owned real estate in Colorado. The corporation also owned a note with a face value of $ 300,000 (basis $ 220,000) cosigned by Mt. Elbert Plamor Ranch, Inc., and Mason. Mason was the 100-percent shareholder of Mt. Elbert, and his liability on the note was limited to the value of the capital stock owned by him in Mt. Elbert. Mason was an energetic real estate developer and petitioners relied on his ability to increase the value of the area in which Twin Lakes held property and so increase the value of their holdings in Twin Lakes.…
1Opinion of the Court
Fat, Judge:
Respondent determined deficiencies in the Federal income taxes of the petitioners, as follows:
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The issues for decision, are whether insurance proceeds were received by reason of the death of the insured and excludable under section 101 (a), I.R.C. 1954,2 or as income from the compromise and settlement of a lawsuit; further, whether any amount of such proceeds was received by petitioners’ corporation in its capacity as a creditor of the insured; and finally, whether petitioners are entitled to a bad debt deduction.
BINDINGS OK FACT
Some of the facts have been stipulated.…
2Cases cited30 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. DavisSupreme Court of the United States · 1962
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Connecticut Mutual Life Insurance v. SchaeferSupreme Court of the United States · 1877
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3Cited by11 opinions
- Hoeme v. CommissionerUnited States Tax Court · 1974
- Wilmot Fleming Engineering Co. v. CommissionerUnited States Tax Court · 1976
- Doggett v. CommissionerUnited States Tax Court · 1976
- Wilmont Fleming Engineering Co. v. CommissionerUnited States Tax Court · 1976
- Doggett v. CommissionerUnited States Tax Court · 1976
6 more not listed; retrieve them via the Exa API.