Arata v. Commissioner
United States Tax Court
Held: (1) Petitioner was not in the business of financing corporations and a claimed loss resulting from a transaction whereby he exchanged 765 shares of stock in Snyder & Black having a fair market value of $ 50 per share for 765 shares of stock in Salers having no fair market value is not deductible as a loss incurred in trade or business within the meaning of section 23 (e) (1), I. R. C. 1939, or as a loss incurred in a transaction entered into for profit within the…
Read the full summary
Held: (1) Petitioner was not in the business of financing corporations and a claimed loss resulting from a transaction whereby he exchanged 765 shares of stock in Snyder & Black having a fair market value of $ 50 per share for 765 shares of stock in Salers having no fair market value is not deductible as a loss incurred in trade or business within the meaning of section 23 (e) (1), I. R. C. 1939, or as a loss incurred in a transaction entered into for profit within the meaning of section 23 (e) (2). (2) Respondent's determination of additions to tax under the provisions of sections 294 (d)…
1Opinion of the Court
Bruce, Judge:
The respondent determined a deficiency in petitioners’ income tax and additions to tax as follows:
_Addition to tax_
Tear Deficiency Sec. 294(d) (2) Sec. 294(d)Xl) (A)
1953_$19,701.88 $714.13 $1,071.18
Certain adjustments determined by respondent have not been contested. The following issues are presented: (1) Whether the petitioners are entitled to a loss deduction in the amount of $38,250 claimed as a result of the transaction whereby George F. Arata exchanged 765 shares of his stock in Snyder & Black for 765 worthless shares of stock in Salers, Incorporated; (2) whether…
2Cases cited20 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Burnet v. ClarkSupreme Court of the United States · 1932
15 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Nash v. CommissionerUnited States Tax Court · 1958
- Frantz v. CommissionerUnited States Tax Court · 1984
- McGlothlin v. CommissionerUnited States Tax Court · 1965
- Dooley v. CommissionerUnited States Tax Court · 1962
- Murphy v. CommissionerUnited States Tax Court · 1993
4 more not listed; retrieve them via the Exa API.