Nieman v. Commissioner
United States Tax Court
1. Held, under the facts, the transaction in issue was a sale by petitioners of their partnership interests, and no net operating loss carryback to 1945 is allowable. 2. Held, the sale in 1947 by petitioner Herbert A. Nieman of his partnership interest was the sale by an individual of property to a corporation in which he directly or indirectly owned more than 50 per centum of the stock; consequently, he is unable to deduct in that year the loss incurred on the transaction.
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1. Held, under the facts, the transaction in issue was a sale by petitioners of their partnership interests, and no net operating loss carryback to 1945 is allowable. 2. Held, the sale in 1947 by petitioner Herbert A. Nieman of his partnership interest was the sale by an individual of property to a corporation in which he directly or indirectly owned more than 50 per centum of the stock; consequently, he is unable to deduct in that year the loss incurred on the transaction. Sec. 24(b), I.R.C. 1939.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
Respondent determined deficiencies in petitioners’ income taxes for the taxable years ended December 31, 1944, 1945, and 1947, as follows:
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Petitioner Herbert A. Nieman claimed overpayment for the year 1945 in the amount of $6,083.11.
Several questions have been resolved by stipulation of the parties. The stipulation will be given effect under Rule 50.
Two issues remain for our consideration: First, whether petitioners are entitled to a net operating loss carryback from 1947 to 1945 and, if so, the amount; and second, whether a loss incurred by petitioner…
2Cases cited3 opinions
- Butler Consol. Coal Co. v. CommissionerUnited States Tax Court · 1946
- Engelhart v. CommissionerUnited States Tax Court · 1958
- Kaiser v. GlennCourt of Appeals for the Sixth Circuit · 1954
3Cited by7 opinions
- Schulz v. CommissionerUnited States Tax Court · 1960
- Hickman v. CommissionerUnited States Tax Court · 1972
- Caplan v. United StatesDistrict Court, S.D. Florida · 1966
- Nieman v. CommissionerUnited States Tax Court · 1959
- Nieman v. CommissionerUnited States Tax Court · 1960
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