Legal Opinion
Commissioner of Internal Revenue v. Arrowsmith Commissioner of Internal Revenue v. Vivian
Court of Appeals for the Second Circuit
Decided January 10, 1952No. 78, 79, Dockets 22077, 22078PublishedCited by 14 opinions
1Opinion of the Court
FRANK, Circuit Judge.
The liabilities which, in 1944, the taxpayers incurred under the judgment and paid, were directly related to — and would not have existed except for- — the capital distributions made by the corporation to those taxpayers in earlier years. Those liabilities, in other words, represent “merely diminution in the capital gain received on the distribution” theretofore made. 1 2The two are tied together, and therefore the deductions in 1944 should be treated as capital losses.
In so holding, we disagree with Commissioner of Internal Revenue v. Switlik, 3 Cir., 184 F.2d 299. The…
2Cases cited9 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- United States v. LewisSupreme Court of the United States · 1951
- Commissioner of Internal Revenue v. CarterCourt of Appeals for the Second Circuit · 1948
- Westover v. SmithCourt of Appeals for the Ninth Circuit · 1949
4 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Milliken v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. MillikenCourt of Appeals for the Second Circuit · 1952
- MacHris v. CommissionerUnited States Tax Court · 1960
- Commissioner of Internal Revenue v. Hartfield. Commissioner of Internal Revenue v. HealyCourt of Appeals for the Second Circuit · 1952
- Johnson v. CommissionerUnited States Tax Court · 1952
9 more not listed; retrieve them via the Exa API.