Cooper v. Commissioner
United States Tax Court
The petitioners, who were shareholders in a corporation, entered into an agreement establishing an alleged joint venture to provide additional funds to the corporation equal to its accumulated net operating loss. The alleged joint venture conducted no other activities. Held, under the circumstances, the alleged joint venture served no business purpose and shall be disregarded for tax purposes; the transaction is in reality a contribution of capital to the corporation.
1Opinion of the Court
SimpsoN, Judge:
The respondent determined the following deficiencies in the Federal income taxes of the petitioners for the year 1968:
Socket No. Petitioners Deficiency
2496-72 Richard M. Cooper and Mary J. Cooper_ $547. 84
2497-72 Harry C. Neer and Mary Neer_ 989. 82
2498-72 W. Albert Johnson and Lulu S. Johnson_ 1, 067. 28
2499-72 Robert D. Brown and Loretta Maye Brown_ 1, 421. 42
Certain issues have been conceded by the petitioners in docket Nos. 2497-72 and 2499-72, and the only issue remaining for decision is whether the petitioners may deduct as a loss payments made by them to an alleged joint…
2Cases cited12 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Higgins v. SmithSupreme Court of the United States · 1940
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- National Investors Corporation v. HoeyCourt of Appeals for the Second Circuit · 1944
7 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Bertoli v. CommissionerUnited States Tax Court · 1994
- Bertoli v. CommissionerUnited States Tax Court · 1994
- Cooper v. CommissionerUnited States Tax Court · 1974
- Gurtman v. CommissionerUnited States Tax Court · 1975