CitationAllen v. Commissioner, 16 T.C. 163, 1951 U.S. Tax Ct. LEXIS 301 (T.C. 1951) Brief Fact Summary. Taxpayer’s brooch was either lost or stolen during a museum visit. Synopsis of Rule of Law. Taxpayer must prove be a preponderance of the evidence that an item was stolen in order to deduct the value of the item as a loss under I.R.C. section 23(e)(3) ...
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Burnet v. Logan
CitationBurnet v. Logan, 283 U.S. 404, 51 S. Ct. 550, 75 L. Ed. 1143, 1931 U.S. LEXIS 896, 78-2 U.S. Tax Cas. (CCH) P736, 9 A.F.T.R. (P-H) 1453, 1931 P.H. P1245 (U.S. May 18, 1931) Brief Fact Summary. Respondent did not claim annual payments from an agreement arising from the sale of stock as income. Respondent claimed the annual payments to her should not count as income until they exceed the original value of the her capital investment in the stock. Synopsis of Rule of Law. Profit is not required to be reported until it is actually realized. ...
Charles J. Haslam v. Commissioner
Citation33 T.C.M. (CCH) 482 (1974) View this case and other resources at: Brief Fact Summary. Charles Haslam and his wife, Petitioners, attempted to deduct bad business loans. Charles Haslam owned an explosives corporation and personally guaranteed loans during financially difficult times. The corporation eventually went bankrupt. Synopsis of Rule of Law. Business bad debt losses are only deductible against ordinary income, and non-business bad debt losses are deductible only as short-term capital losses. ...
Pulvers v. Commissioner
CitationPulvers v. Commissioner, 407 F.2d 838, 1969 U.S. App. LEXIS 9035, 69-1 U.S. Tax Cas. (CCH) P9222, 23 A.F.T.R.2d (RIA) 678 (9th Cir. Feb. 6, 1969) Brief Fact Summary. A nearby landslide ruined three homes nearby, but did not do any damage to the property of Taxpayers. Taxpayers took an “other casualty loss” deduction for the loss of value because of a common fear that the future landslides might take their residence at some point in the future as well. Synopsis of Rule of Law. A fluctuation in value does not count as an “other casualty loss” subject to a dedu ...
United States v. Parker
CitationUnited States v. Parker, 376 F.2d 402, 1967 U.S. App. LEXIS 6734, 67-1 U.S. Tax Cas. (CCH) P9380, 19 A.F.T.R.2d (RIA) 1281 (5th Cir. La. Apr. 14, 1967) Brief Fact Summary. Respondents formed their business into a corporation with B.K. Eaves, a longtime friend. Respondents owned 80% of the stock and Eaves owned 20%. Respondent sold various items to the corporation. Synopsis of Rule of Law. A sale or exchange of depreciable property to a controlled corporation or a spouse may not be given capital gain treatment. ...
Howard S. Bugbee v. Commissioner
CitationBugbee v. Commissioner, 1975 Tax Ct. Memo LEXIS 329, T.C. Memo 1975-45, 34 T.C.M. (CCH) 291, T.C.M. (RIA) 750045 (T.C. Mar. 3, 1975) Brief Fact Summary. Petitioner loaned $19,750 to a friend who he thought would use the money to turn an idea into a successful business venture. The friend did not succeed and Petitioner claimed the loan as a short-term capital loss on his tax return. Synopsis of Rule of Law. In order to establish a debtor-creditor relationship, a bona fide debt must exist based on a valid and enforceable obligation to pay a fixed and determinable amount of money. ...
Wasnok v. Commissioner
CitationWasnok v. Commissioner, 1971 Tax Ct. Memo LEXIS 327, T.C. Memo 1971-6, 30 T.C.M. (CCH) 39, T.C.M. (RIA) 71006 (T.C. Jan. 11, 1971) Brief Fact Summary. Petitioners bought a house in Ohio and subsequently moved to California. Unable to sell the Ohio house, they rented in out for a number of years. Eventually they were unable to continue to make the mortgage payments and were forced to deed the property back to the bank. Synopsis of Rule of Law. A capital asset does not include property used in a trade or business, including real property. ...
William v. McGowan
CitationWilliams v. McGowan, 152 F.2d 570, 1945 U.S. App. LEXIS 4101, 46-1 U.S. Tax Cas. (CCH) P9120, 34 A.F.T.R. (P-H) 615, 162 A.L.R. 1036, 1946 P.H. P72,308 (2d Cir. N.Y. Dec. 20, 1945) Brief Fact Summary. Taxpayer entered into a partnership arrangement wherein he owned two-thirds of the business. After his partner died he sold the business to another company and claimed the gain as ordinary income and not as a capital asset. Synopsis of Rule of Law. All property is capital assets except stock in trade or inventory property, property held primarily for sale to customers, and property use ...
Metropolitan Bldg. Co. v. Commissioner
CitationMetropolitan Bldg. Co. v. Commissioner, 282 F.2d 592, 1960 U.S. App. LEXIS 3778, 60-2 U.S. Tax Cas. (CCH) P9686, 6 A.F.T.R.2d (RIA) 5493 (9th Cir. Sept. 2, 1960) Brief Fact Summary. Petitioner, Metropolitan Building Company, leased property from the University of Washington. Petitioner sublet the property to Olympic, Inc. and a hotel was built. The University sought to acquire the leasehold interest and did so through a transaction with Olympic and Petitioner. Synopsis of Rule of Law. An amount paid as a substitute for rental payments should be treated as ordinary income. ...
Arrowsmith v. Commissioner
CitationArrowsmith v. Commissioner, 344 U.S. 6, 73 S. Ct. 71, 97 L. Ed. 6, 1952 U.S. LEXIS 2768, 52-2 U.S. Tax Cas. (CCH) P9527, 42 A.F.T.R. (P-H) 649, 1952-2 C.B. 136, 1952 P.H. P72,008 (U.S. Nov. 10, 1952) Brief Fact Summary. Petitioners were equal owners of a corporation and liquidated the assets and divided the proceeds. A judgment levied against the corporation was paid by Petitioners who sought to claim the loss as an ordinary business loss instead of a capital loss. Synopsis of Rule of Law. Each taxable year is a separate unit for tax accounting purposes. ...
United States v. Skelly Oil Co
CitationUnited States v. Skelly Oil Co., 394 U.S. 678, 89 S. Ct. 1379, 22 L. Ed. 2d 642, 1969 U.S. LEXIS 3276, 69-1 U.S. Tax Cas. (CCH) P9343, 23 A.F.T.R.2d (RIA) 1186, 33 Oil & Gas Rep. 192 (U.S. Apr. 21, 1969) Brief Fact Summary. Respondent was in the natural gas business in Oklahoma. After a change in the minimum price order on natural gas, Respondent had to refund a large amount of money to customers previously claimed as gross income. Synopsis of Rule of Law. If a taxpayer was not entitled to keep money, he is entitled to a deduction in the year it is refunded. ...
Galvin Hudson v. Commissioner
CitationHudson v. Commissioner, 20 T.C. 734, 1953 U.S. Tax Ct. LEXIS 99 (T.C. 1953) Brief Fact Summary. Petitioners purchased an outstanding judgment from the estate of Mary Harahn. The debtor paid the judgment to Petitioners and they realized a profit. Synopsis of Rule of Law. Gain realized not from a sale or exchange of a capital asset may not be treated as a capital loss or gain. ...
Hort v. Commissioner
CitationHort v. Commissioner, 313 U.S. 28, 61 S. Ct. 757, 85 L. Ed. 1168, 1941 U.S. LEXIS 1283, 41-1 U.S. Tax Cas. (CCH) P9354, 25 A.F.T.R. (P-H) 1207, 1941-1 C.B. 319, 1941 P.H. P62,041 (U.S. Mar. 31, 1941) Brief Fact Summary. Petitioner inherited a lot and office building upon his father’s death. The building came encumbered with a lease. The tenant wanted out of the lease and Petitioner negotiated a buyout. Synopsis of Rule of Law. Gross income includes gains, profits, and income derived from rent, or from any source whatsoever. ...
Mauldin v. Commissioner
CitationMauldin v. Commissioner, 195 F.2d 714, 1952 U.S. App. LEXIS 4037, 52-1 U.S. Tax Cas. (CCH) P9258, 41 A.F.T.R. (P-H) 1126, 1952 P.H. P72,367 (10th Cir. Mar. 19, 1952) Brief Fact Summary. Petitioner bought a large tract of land for the cattle business. After deciding against the cattle business, he divided the land into tracts and aggressively sold the tracts. At one point he stopped aggressively selling and went full-time into the lumber industry. Synopsis of Rule of Law. Profits received from the ordinary course of one’s trade or business should be treated and ordinary incom ...
Malat v. Riddell
CitationMalat v. Riddell, 383 U.S. 569, 86 S. Ct. 1030, 16 L. Ed. 2d 102, 1966 U.S. LEXIS 2016, 66-1 U.S. Tax Cas. (CCH) P9317, 17 A.F.T.R.2d (RIA) 604 (U.S. Mar. 21, 1966) Brief Fact Summary. Petitioner bought a tract of land as part of a joint venture. The original intent was to develop it with an apartment building. After failing to receive financing and other reasons, Petitioner sold out his interests. Synopsis of Rule of Law. Capital gains treatment may not be given to profits received from the sale of property held by the taxpayer primarily for sale to customers in the ordinary cou ...
Kenan v. Commissioner
CitationKenan v. Commissioner, 114 F.2d 217, 1940 U.S. App. LEXIS 3097, 40-2 U.S. Tax Cas. (CCH) P9635, 25 A.F.T.R. (P-H) 607 (2d Cir. Aug. 7, 1940) Brief Fact Summary. Taxpayers were trustees for a trust set up in Mrs. Bingham’s will. She provided that $5 million in cash or securities should be provided to her niece when she turned forty years old. Synopsis of Rule of Law. The gain from the sale or other disposition of property shall be the excess of the amount realized over the adjusted basis. ...
Van Cleave v. United States
CitationVan Cleave v. United States, 718 F.2d 193, 1983 U.S. App. LEXIS 16263, 83-2 U.S. Tax Cas. (CCH) P9620, 52 A.F.T.R.2d (RIA) 6071 (6th Cir. Mich. Oct. 5, 1983) Brief Fact Summary. Taxpayer was the president and majority stockholder of a corporation. The corporation had an agreement with him where he would return any portion of his salary that may be determined to be excessive by the IRS. In 1974 the IRS determined he received excessive salary in the amount of $57,500 and he paid it back to the corporation. Synopsis of Rule of Law. Section 1341 treatment provides that if a taxpayer in ...
Alice Phelan Sullivan Corp. v. United States
CitationAlice Phelan Sullivan Corp. v. United States, 381 F.2d 399, 180 Ct. Cl. 659, 1967 U.S. Ct. Cl. LEXIS 14, 67-2 U.S. Tax Cas. (CCH) P9570, 20 A.F.T.R.2d (RIA) 5137 (Ct. Cl. July 20, 1967) Brief Fact Summary. Taxpayer sues claiming refund of amount of deficiency paid after her charitable conveyance was reconveyed to her years later. Taxpayer alleges taxes due on reconveyance can not exceed tax deduction benefit she originally received by making conveyances. Synopsis of Rule of Law. A transaction which returns to the taxpayer his own property gives rise to income when the recovered item ...
Artnell Co. v. Commissioner
CitationArtnell Co. v. Comm’r, 400 F.2d 981, 1968 U.S. App. LEXIS 5501, 68-2 U.S. Tax Cas. (CCH) P9593, 22 A.F.T.R.2d (RIA) 5590 (7th Cir. Sept. 19, 1968) Brief Fact Summary. The owner of the Chicago White Sox baseball team sought to defer income for prepaid services, such as game tickets, until the actual event and not before. The tax court found that deferral was not an option and the White Sox appealed. Synopsis of Rule of Law. Prepaid items do not necessarily accrue for tax purposes in the year of receipt. ...
Schuessler v. Commissioner
CitationSchuessler v. Commissioner, 230 F.2d 722, 1956 U.S. App. LEXIS 5175, 56-1 U.S. Tax Cas. (CCH) P9368, 49 A.F.T.R. (P-H) 322 (5th Cir. Mar. 14, 1956) Brief Fact Summary. Taxpayer owned and ran a gas furnace business. With each furnace sold he provided a service guarantee to turn the furnace on and off for five years. For the 1946 tax year, he sold 665 and attempted to deduct a reserve account set up for the service guarantees. Synopsis of Rule of Law. A reserve account may be set up and deducted from gross income when it is for a legal liability in existence. ...
United States v. Lewis
CitationUnited States v. Lewis, 340 U.S. 590, 71 S. Ct. 522, 95 L. Ed. 560, 1951 U.S. LEXIS 2472, 51-1 U.S. Tax Cas. (CCH) P9211, 40 A.F.T.R. (P-H) 258, 1951-1 C.B. 21, 1951 P.H. P72,005 (U.S. Mar. 26, 1951) Brief Fact Summary. Respondent received an employee bonus of $22,000. He reported this as income but later found out he was really only entitled to $11,000. Synopsis of Rule of Law. If one receives income under a claim of right and without restriction, then it is income for that taxable year. ...
North American Oil Consolidated v. Burnet
CitationNorth American Oil Consol. v. Burnet, 286 U.S. 417, 52 S. Ct. 613, 76 L. Ed. 1197, 1932 U.S. LEXIS 856, 3 U.S. Tax Cas. (CCH) P943, 11 A.F.T.R. (P-H) 16, 1932-1 C.B. 293, 1932 P.H. P1247 (U.S. May 23, 1932) Brief Fact Summary. Petitioner operated oil drilling on a parcel of land that belonged to the United States. The U.S. filed suit to oust Petitioner and the oil operation went into receivership. There was income earned for a year it was in receivership and the income was paid to Petitioner the following year. Synopsis of Rule of Law. Income is taxable during the year a taxpayer ...
New Capital Hotel, Inc. v. Commissioner
CitationNew Capital Hotel, Inc. v. Commissioner, 28 T.C. 706, 1957 U.S. Tax Ct. LEXIS 151 (T.C. 1957) Brief Fact Summary. Petitioner leased property for 10 years at $30,000 per year. The lessee agreed to pay $30,000 in advance for the last year of the lease. Petitioner did not include this amount in his gross income. Synopsis of Rule of Law. Income is includable in gross income in the year received. ...
Cathcart v. Commissioner
CitationCathcart v. Commissioner, 1977 Tax Ct. Memo LEXIS 113, T.C. Memo 1977-328, 36 T.C.M. (CCH) 1321, T.C.M. (RIA) 770328 (T.C. Sept. 22, 1977) Brief Fact Summary. Petitioners obtained a home loan a portion of which was used to pay points. Petitioners attempted to deduct this full amount in the first tax year of the loan. Synopsis of Rule of Law. Interest paid or accrued on debt may be deducted within the tax year. ...
Vander Poel, Francis & Co., Inc. v. Commissioner
CitationVander Poel, Francis & Co. v. Commissioner, 8 T.C. 407, 1947 U.S. Tax Ct. LEXIS 271 (T.C. 1947) Brief Fact Summary. Petitioner, Vander Poel, Francis & Co., Inc., deducted the salaries paid to two of its officers, Vander Poel and Francis. However, the entire amount of their salary was not actually paid in the year it was deducted by Petitioners. The Commissioner did not allow the full deduction. Synopsis of Rule of Law. The doctrine of constructive receipt does not parallel the doctrine of constructive payment. ...