Perry v. Commissioner
United States Tax Court
The allowable portion of a net operating loss properly deductible by a shareholder in an electing small business corporation does not include corporate debts to third parties which have been guaranteed by such shareholder. The obligation of the shareholder-guarantor was secondary and would not support the proposition of "[an] indebtedness of the corporation to the shareholder" under sec. 1374(c)(2)(B), I.R.C. 1954.
1Opinion of the Court
Forrester, Judge:
The respondent determined deficiencies in the petitioners’ Federal income taxes for the calendar years 1960 and 1961 in the respective amounts of $3,324.18 and $2,118.96. Some concessions have been made, and the only issue for our decision is whether the petitioners’ deductible share of the net operating losses incurred by an electing small business corporation exceeds the amounts allowed by the respondent.
FINDINGS OF FACT
Some of the facts have been stipulated and are incorporated herein by this reference.
William H. Perry and Marion E. Perry, husband and wife, filed joint…
2Cases cited5 opinions
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Stamos v. CommissionerUnited States Tax Court · 1954
- Shea v. CommissionerUnited States Tax Court · 1961
- Four-Three-O-Six Duncan Corp. v. Security Trust Co.Supreme Court of Missouri · 1963
- Kelly-Springfield Tire Co. v. HamiltonMissouri Court of Appeals · 1936
3Cited by49 opinions
- Morris G. Underwood and Jackie Underwood, Individuals v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1976
- Underwood v. CommissionerUnited States Tax Court · 1975
- Estate of Leavitt v. CommissionerUnited States Tax Court · 1988
- Edward M. Selfe and Jane B. Selfe v. United StatesCourt of Appeals for the Eleventh Circuit · 1985
- Raynor v. CommissionerUnited States Tax Court · 1968
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