Byrne v. Commissioner
United States Tax Court
Petitioner and his wife owned all but one share of the stock of a corporation which was an electing small business corporation under subchapter S of the 1954 Code.
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Petitioner and his wife owned all but one share of the stock of a corporation which was an electing small business corporation under subchapter S of the 1954 Code. Petitioner was paid a salary as an officer of the corporation, which the corporation deducted in computing its taxable income for the years involved, resulting in the corporation incurring a net operating loss for the years 1958, 1959, and 1960. The corporation also realized long-term capital gain in 1959 in excess of its net operating loss. Petitioner included in his gross income on his individual returns the salary he received…
1Opinion of the Court
OPINION
Drennen, Judge:
Respondent determined deficiencies in petitioner’s income tax for the years 1959 and 1960 in the respective amounts of $557.58 and $3,807.63.
There are two issues for decision:(1) Whether petitioner is entitled to deduct in the taxable years 1959 and 1960, net operating losses of J. J. Glenn & Co. (hereafter referred to as Glenn Co.), a corporation which elected as a small business corporation, pursuant to the provisions of section 1372,1 not to be subject to income tax.(2) The amount of the net long-term capital gain of Glenn Co. includable in petitioner’s income for…
2Cases cited1 opinion
- Nathan Hauptman, Trustee v. Director of Internal Revenue, Raymond Zurawin, and Rose ZurawinCourt of Appeals for the Second Circuit · 1962
3Cited by15 opinions
- Borg v. CommissionerUnited States Tax Court · 1968
- Prashker v. CommissionerUnited States Tax Court · 1972
- Perry v. CommissionerUnited States Tax Court · 1968
- Plowden v. CommissionerUnited States Tax Court · 1967
- Wiebusch v. CommissionerUnited States Tax Court · 1973
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