Zenith Sportswear Co. v. Commissioner
United States Tax Court
1. At the beginning of the first taxable year in question, petitioner took over the business of a partnership then being conducted by two individuals on leased premises. The partners became equal stockholders in petitioner which continued to conduct the business on the same premises. Petitioner did not take over the lease but it did pay the annual rental of $ 6,500 provided for in the lease.
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1. At the beginning of the first taxable year in question, petitioner took over the business of a partnership then being conducted by two individuals on leased premises. The partners became equal stockholders in petitioner which continued to conduct the business on the same premises. Petitioner did not take over the lease but it did pay the annual rental of $ 6,500 provided for in the lease. During the first taxable year a disagreement arose between the two stockholders, as a result of which one stockholder sold to petitioner all of his stock interest in petitioner, together with his one-half…
1Opinion of the Court
Arundell, Judge:
Respondent determined deficiencies in income tax for the taxable years ended February 28, 1947, and February 29, 1948, in the amounts of $11,082.88 and $5,035.94, respectively. Petitioner contests the deficiencies and for the year 1947 claims a refund.
Several minor issues were settled by oral stipulation and effect will be given thereto under Rule 50. One issue was waived by petitioner. The two issues remaining are: (1) Whether petitioner is entitled to deduct from its gross income for the taxable years ended February 28, 1947, and February 29, 1948, the amounts of $12,500 and…
2Cases cited3 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Gunn v. CommissionerUnited States Tax Court · 1955
- Perrault v. CommissionerCourt of Appeals for the Tenth Circuit · 1957
3Cited by3 opinions
- Bowyer v. CommissionerUnited States Tax Court · 1960
- Bowyer v. CommissionerUnited States Tax Court · 1960
- Zenith Sportswear Co. v. CommissionerUnited States Tax Court · 1957