Smith v. Commissioner
United States Tax Court
Held, petitioner was not engaged in the trade or business of promoting corporations for gain on their sale in the ordinary course of such business and, therefore, his loss on a debt arising from advances to a wholly owned corporation was a nonbusiness bad debt deductible only as a short-term capital loss subject to the limitations of sec. 1211, I.R.C. 1954. Whipple v. Commissioner, 373 U.S. 193 (1963), rehearing denied 374 U.S. 858 (1963).
1Opinion of the Court
Earl M. Smith and Ruth A. Smith, Petitioners v. Commissioner of Internal Revenue, Respondent
Smith v. Commissioner
Docket No. 9354-72
United States Tax Court
62 T.C. 263; 1974 U.S. Tax Ct. LEXIS 100; 62 T.C. No. 31;
May 30, 1974, Filed
Decision will be entered under Rule 155.
Held, petitioner was not engaged in the trade or business of promoting corporations for gain on their sale in the ordinary course of such business and, therefore, his loss on a debt arising from advances to a wholly owned corporation was a nonbusiness bad debt deductible only as a short-term capital loss subject to the…
2Cases cited12 opinions
- Whipple v. CommissionerSupreme Court of the United States · 1963
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Burnet v. ClarkSupreme Court of the United States · 1932
- United States v. GeneresSupreme Court of the United States · 1972
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