Perrett v. Commissioner
United States Tax Court
Held, on the facts, petitioners did not suffer a deductible loss in 1970 on the disposition on Dec. 30 of stock which they had acquired in early December of that year because the stock purchase and sale transaction lacked significant economic substance.
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Held, on the facts, petitioners did not suffer a deductible loss in 1970 on the disposition on Dec. 30 of stock which they had acquired in early December of that year because the stock purchase and sale transaction lacked significant economic substance. Held, further, on the facts, the amounts paid by petitioner's partnership to certain trusts were not deductible as interest under sec. 163(a), I.R.C. 1954, because the transactions between the trusts and the partnership were not loans, in substance, and the trusts were mere conduits of the funds which were the subject of the purported loans.
1Opinion of the Court
Featherston, Judge:
This case was tried before Special Trial Judge Lehman C. Aarons pursuant to Rule 180, Tax Court Rules of Practice and Procedure. His report was served on the parties. Petitioners filed exceptions, and respondent filed a brief in response to petitioners’ exceptions. After careful consideration, the Special Trial Judge’s report, which is set forth below, is adopted with minor modifications.
REPORT OF THE SPECIAL TRIAL JUDGE*
Aarons, Special Trial Judge:
Respondent determined deficiencies in the amounts of $9,172 and $45,065, respectively, in petitioners’ Federal income tax for…
2Cases cited36 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Higgins v. SmithSupreme Court of the United States · 1940
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3Cited by26 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
- Gordon v. CommissionerUnited States Tax Court · 1985
- Bonaire Development Co. v. CommissionerUnited States Tax Court · 1981
- Lilley v. CommissionerUnited States Tax Court · 1989
- Wilken v. CommissionerUnited States Tax Court · 1987
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