Brutsche v. Commissioner
United States Tax Court
Held: 1. On the basis of the facts in this record, advances by one of the stockholders of a corporation (T.M.) to that corporation were loans and not contributions to capital and these advances did not constitute a second class of stock under sec. 1371, I.R.C. 1954; 2. Under sec. 1372(c)(1), I.R.C. 1954, T.M.'s election on June 26, 1961, to be taxed as an electing small business corporation was not timely with respect to its first taxable year ending on June 30, 1961, but…
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Held: 1. On the basis of the facts in this record, advances by one of the stockholders of a corporation (T.M.) to that corporation were loans and not contributions to capital and these advances did not constitute a second class of stock under sec. 1371, I.R.C. 1954; 2. Under sec. 1372(c)(1), I.R.C. 1954, T.M.'s election on June 26, 1961, to be taxed as an electing small business corporation was not timely with respect to its first taxable year ending on June 30, 1961, but was timely with respect to its second taxable year beginning on July 1, 1961, and ending June 30, 1962; 3. Under the facts…
1Opinion of the Court
OPINION
Petitioners’ primary position is that Thunder Mountain was not an electing small business corporation and consequently any increase in its undistributed income for its fiscal year 1969 is not taxable to them for the calendar year 1969 but to the corporation. Petitioners stated the following bases for this position:(1) Thunder Mountain had more than one class of stock since the loans to the corporation by Ralph were equity investments, and consequently it was ineligible to elect under section 1371(a) to be taxed as a small business corporation;(2) Even if Thunder Mountain were eligible…
2Cases cited27 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Dixon v. United StatesSupreme Court of the United States · 1965
- Hort v. CommissionerSupreme Court of the United States · 1941
- Continental Tie & Lumber Co. v. United StatesSupreme Court of the United States · 1932
- Raytheon Production Corp. v. Commissioner of Int. Rev.Court of Appeals for the First Circuit · 1944
22 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Estate of Delman v. CommissionerUnited States Tax Court · 1979
- Davis v. CommissionerUnited States Tax Court · 1978
- Ralph L. Brutsche and Ingrid Brutsche v. Commissioner of Internal Revenue, Ruth L. Farley v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1978
- Gehl v. CommissionerUnited States Tax Court · 1994
- Thompson v. CommissionerUnited States Tax Court · 1976
13 more not listed; retrieve them via the Exa API.