(Download) "George C. and Angela B. v. Commissioner Internal Revenue" by United States Court of Appeals for the Fifth Circuit # eBook PDF Kindle ePub Free
eBook details
- Title: George C. and Angela B. v. Commissioner Internal Revenue
- Author : United States Court of Appeals for the Fifth Circuit
- Release Date : January 30, 1991
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 76 KB
Description
This kaleidoscopic federal income tax case was filed in the United States Tax Court by Petitioners-Appellants George C. and Angela B. McIngvale (collectively, Taxpayers) against the Commissioner of Internal Revenue (the Commissioner) for a redetermination of federal income tax deficiencies previously determined by the Internal Revenue Service (IRS). Following a trial on the merits, the tax court ruled in favor of the Commissioner, holding that (1) Taxpayers had failed to meet their burden of proof to support a claimed reduction of $15,000 for overstatement of income, and (2) Taxpayers 1978 loss, incurred in connection with their interest in a Nautilus franchise transferred in 1974 to their childrens corporation in consideration of that corporations grant of a private annuity which became worthless in 1978, was governed by the annuity provisions of 26 U.S.C. 72 (hereafter Section 72 of the Internal Revenue Code (I.R.C.) of 1954, as amended), and not by the franchise provisions of I.R.C. ? 1253, so that the loss sustained by the Taxpayers was a capital loss rather than an ordinary loss under I.R.C. ? 165. On appeal, Taxpayers claim that the tax court clearly erred in its factual determination regarding the $15,000 item, and erred as a matter of law in failing to apply I.R.C. ? 1253 to Taxpayers franchise loss to produce ordinary loss, or alternatively in failing to allow ordinary loss treatment under I.R.C. ? 165.