Legal Opinion

Perrett v. Commissioner

United States Tax Court

Decided April 24, 1980No. Docket Nos. 4446-74, 5900-76Published

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

Michael F. Perrett and Mari M. Perrett, Petitioners v. Commissioner of Internal Revenue, Respondent

Perrett v. Commissioner

Docket Nos. 4446-74, 5900-76

United States Tax Court

74 T.C. 111; 1980 U.S. Tax Ct. LEXIS 144;

April 24, 1980, Filed

Decision will be entered for the respondent in docket No. 4446-74.

Decision will be entered under Rule 155 in docket No. 5900-76.

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…

2Cases cited37 opinions

  1. Gregory v. HelveringSupreme Court of the United States · 1935
  2. Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
  3. Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
  4. Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
  5. Higgins v. SmithSupreme Court of the United States · 1940

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