Martin v. Commissioner
United States Tax Court
T, as a stockholder and guarantor of certain corporate notes of X Corp., made partial payments in discharge of his obligation as guarantor. At the time of his payments X Corp., which was insolvent, had been dissolved. Held: T's loss is not deductible under sec. 165(c)(2), I.R.C. 1954, as a loss incurred in a transaction entered into for profit. T is limited to a short-term capital loss as determined by the Commissioner. Putnam v. Commissioner, 352 U.S. 82 (1956).
1Opinion of the Court
OPINION
Tietjens, Judge:
The Commissioner determined a deficiency in petitioners’ 1964 income tax of $6,193.66. We must decide whether a $425,000 loss claimed by petitioner Bert W. Martin in 1964 is deductible under section 165(c) (2) of the Internal Revenue Code of 19541 as a loss incurred in a transaction entered into for profit.
The facts have been fully stipulated and are so found. The stipulation and the exhibits attached thereto are incorporated herein by this reference.
Bert W. Martin (hereinafter referred to as Martin) and Ada L. Martin, husband and wife, resided at San Marino, Calif., at…
2Cases cited9 opinions
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Eckert v. BurnetSupreme Court of the United States · 1931
- Santa Anita Consol., Inc. v. CommissionerUnited States Tax Court · 1968
- Shiman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1932
- Shea v. CommissionerUnited States Tax Court · 1961
4 more not listed; retrieve them via the Exa API.
3Cited by41 opinions
- Rushing v. CommissionerUnited States Tax Court · 1972
- Imel v. CommissionerUnited States Tax Court · 1973
- Horne v. CommissionerUnited States Tax Court · 1972
- M. Seth Horne and Maurine D. Horne v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975
- Stoody v. CommissionerUnited States Tax Court · 1976
36 more not listed; retrieve them via the Exa API.