Skarda v. Commissioner
United States Tax Court
The petitioners began publishing a daily newspaper in 1949 and took certain steps to incorporate it. In 1949 and 1950, they advanced a total of $ 84,300 to the newspaper to keep it in business.
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The petitioners began publishing a daily newspaper in 1949 and took certain steps to incorporate it. In 1949 and 1950, they advanced a total of $ 84,300 to the newspaper to keep it in business. As a result of losses incurred thereby, the petitioners claimed business bad debt deductions in 1949 and 1950 under section 23 (k) (1), 1939 Code, and in the alternative they claimed deductions under sections 23 (a) (1) (A), 23 (e) (1), or 23 (e) (2). Held, a valid corporation, recognizable as a separate taxable entity, was created by the petitioners in 1949; held, further, a debtor-creditor…
1Opinion of the Court
OPINION.
Mulroney, Judge:
Lynell G. Skarda, the only witness at the trial, testified that he and his two brothers were licensed attorneys living in Clovis, New Mexico. He was actively engaged in the practice of law but his brothers were engaged in other businesses. In 1942, the three Skarda brothers, in addition to their regular businesses, formed a partnership to operate farming interests. The partnership invested heavily in cattle from 1946 through the tax years involved. In 1949, they decided to start, and did start, a newspaper in Clovis, New Mexico. They immediately took steps to…
2Cases cited11 opinions
- Higgins v. SmithSupreme Court of the United States · 1940
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Burnet v. ClarkSupreme Court of the United States · 1932
- Burnet v. Commonwealth Improvement Co.Supreme Court of the United States · 1932
6 more not listed; retrieve them via the Exa API.
3Cited by62 opinions
- Rollins v. CommissionerUnited States Tax Court · 1959
- Trent v. CommissionerUnited States Tax Court · 1960
- Pachella v. CommissionerUnited States Tax Court · 1961
- Weigman v. CommissionerUnited States Tax Court · 1967
- Stoody v. CommissionerUnited States Tax Court · 1976
57 more not listed; retrieve them via the Exa API.