Theo. H. Davies & Co. v. Commissioner
United States Tax Court
Petitioners had ordinary income and capital losses from sources without the United States, but no capital gains from such sources. In its tax returns for the years involved, it used its capital losses to offset capital gains from sources within the United States.
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Petitioners had ordinary income and capital losses from sources without the United States, but no capital gains from such sources. In its tax returns for the years involved, it used its capital losses to offset capital gains from sources within the United States. Held, to the extent that petitioners' capital losses were so used, such losses are "properly apportioned or allocated" to gross income from sources without the United States, pursuant to sec. 862(b), I.R.C. 1954, in computing the numerator of the fraction set forth in sec. 904(a), I.R.C. 1954, namely "taxable income from sources…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined deficiencies in petitioners’ income tax of $73,594 and $417,983 for the taxable years ending December 31, 1972, and December 31, 1973, respectively. The sole issue to be decided is the proper treatment of capital losses incurred outside the United States in computing the overall foreign tax credit pursuant to section 904(a)(2).1
This case was submitted fully stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure.
The petitioners are corporations which constitute an affiliated group for the purpose of filing consolidated income…
2Cases cited22 opinions
- Dixon v. United StatesSupreme Court of the United States · 1965
- Graves v. New York Ex Rel. O'KeefeSupreme Court of the United States · 1939
- Allen v. Trust Co. of Ga.Supreme Court of the United States · 1946
- Stubbs, Overbeck & Associates, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1971
- Sandor v. CommissionerUnited States Tax Court · 1974
17 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- International Tel. & Tel. Corp. etc. v. CommissionerUnited States Tax Court · 1981
- Perkin-Elmer Corp. v. CommissionerUnited States Tax Court · 1994
- Estate of Reilly v. CommissionerUnited States Tax Court · 1981
- Hershey Foods Corp. v. CommissionerUnited States Tax Court · 1981
- Doyle, Dane, Bernbach, Inc. v. CommissionerUnited States Tax Court · 1982
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