Liberty Mirror Works v. Commissioner
United States Tax Court
1. Income -- Forgiveness of Debt. -- The payment of a portion of an indebtedness, the extension of a portion thereof, and the cancellation of the balance, held, to constitute a gratuitous forgiveness of the canceled portion, which did not result in the receipt of taxable income by the debtor.
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1. Income -- Forgiveness of Debt. -- The payment of a portion of an indebtedness, the extension of a portion thereof, and the cancellation of the balance, held, to constitute a gratuitous forgiveness of the canceled portion, which did not result in the receipt of taxable income by the debtor. Helvering v. American Dental Co., 318 U.S. 322. 2. Invested Capital -- Exclusion of Amount of Forgiven Debts. -- The aggregate amount of debts forgiven by petitioner's creditors in 1936, 1937, and 1939 and credited to surplus account in those years, held, not includible in petitioner's "equity invested…
1Opinion of the Court
OPINION.
Smith, Judge:
We shall first dispose of the respondent’s motion to dismiss the proceeding, in so far as it relates to income tax for 1941, for want of jurisdiction. The respondent determined an overassessment of $543.31 in income tax for that year and a deficiency of $1,450.56 in excess profits tax. The petition contains no allegation of error with respect to the determination of income tax liability for that year. The respondent’s determination of the deficiency in excess profits tax for 1941 confers no jurisdiction upon the Court with respect to income tax for that year. Respondent’s…
2Cases cited3 opinions
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Willcuts v. Milton Dairy Co.Supreme Court of the United States · 1927
3Cited by31 opinions
- Brown Shoe Co. v. CommissionerSupreme Court of the United States · 1950
- Danenberg v. CommissionerUnited States Tax Court · 1979
- Pioneer Parachute Co. v. CommissionerUnited States Tax Court · 1944
- Difco Laboratories, Inc. v. CommissionerUnited States Tax Court · 1948
- Foresun, Inc. v. CommissionerUnited States Tax Court · 1964
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