Busche v. Commissioner
United States Tax Court
Petitioner and his partner transferred the partnership business and assets to a corporation which they controlled and then liquidated the partnership. Held, deduction of any loss sustained by petitioner upon the transaction is prohibited by section 24 (b) (1) (B) of the Internal Revenue Code of 1939.
1Opinion of the Court
OPINION.
Tietjens, Judge:
In his notice of deficiency the respondent considered the petitioner’s loss on dissolution of the partnership a loss from the sale or exchange of a capital asset and not an ordinary loss as claimed by the petitioner on his return. Later, in an amendment to his answer, the respondent alleged that the sale of assets and dissolution of the partnership were one transaction whereby the petitioner sold his interest in the partnership to a corporation in which he owned, directly or indirectly, more than 50 per cent in value of the outstanding stock, so that deduction of any…
2Cases cited4 opinions
- Commissioner of Internal Revenue v. WhitneyCourt of Appeals for the Second Circuit · 1948
- Randolph Products Co. v. ManningCourt of Appeals for the Third Circuit · 1949
- Western Transmission Corp. v. CommissionerUnited States Tax Court · 1952
- Walnut Street Co. v. GlennDistrict Court, W.D. Kentucky · 1948
3Cited by9 opinions
- Moradian v. CommissionerUnited States Tax Court · 1969
- Casel v. CommissionerUnited States Tax Court · 1982
- Hyplains Dressed Beef, Inc. v. CommissionerUnited States Tax Court · 1971
- Busche v. CommissionerUnited States Tax Court · 1955
- Casel v. CommissionerUnited States Tax Court · 1982
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