Zivnuska v. Commissioner
United States Tax Court
1. Held, that the aggregate amount of cash advances which the principal petitioner made to or through the president of an insolvent corporation of which he was a stockholder, for use in satisfying claims against such insolvent corporation, was $ 95,300. 2. Held, that such advances constituted contributions by petitioner to the risk capital of said corporation; that his loss in respect of the same was not incurred in any trade or business, and is not deductible as a "business…
Read the full summary
1. Held, that the aggregate amount of cash advances which the principal petitioner made to or through the president of an insolvent corporation of which he was a stockholder, for use in satisfying claims against such insolvent corporation, was $ 95,300. 2. Held, that such advances constituted contributions by petitioner to the risk capital of said corporation; that his loss in respect of the same was not incurred in any trade or business, and is not deductible as a "business bad debt"; and also that such loss did not produce a "net operating loss," in respect of which any net operating loss…
1Opinion of the Court
Pierce, Judge:
Respondent determined deficiencies against the petitioners in income taxes and additions to tax as follows:
[[Image here]]
Tbe issues for decision are:(1) Whether in tbe taxable year 1951, the principal petitioner incurred a business bad debt loss of $129,496.26 or any other amount, in connection with cash advances made to or through the president of an insolvent corporation of which he was a principal stockholder, for use in satisfying claims against said insolvent corporation.(2) Whether, by reason of any loss in connection with such advances, petitioner sustained a “net…
2Cases cited9 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Spies v. United StatesSupreme Court of the United States · 1943
- Helvering v. MitchellSupreme Court of the United States · 1938
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- Commissioner v. AckerSupreme Court of the United States · 1959
4 more not listed; retrieve them via the Exa API.
3Cited by52 opinions
- Carlos and Jacqueline Marcello v. Commissioner of Internal Revenue, Joseph, Jr. And Anastasia Marcello v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1967
- Hatfield v. CommissionerUnited States Tax Court · 1977
- Electric & Neon, Inc. v. CommissionerUnited States Tax Court · 1971
- Bagur v. Comm'rUnited States Tax Court · 1976
- Ross Glove Co. v. CommissionerUnited States Tax Court · 1973
47 more not listed; retrieve them via the Exa API.