United States v. Ferguson Barnes and Esther Barnes

Fifth Circuit

United States v. Ferguson Barnes and Esther Barnes

327 F.2d 986, 13 A.F.T.R.2d (RIA) 729, 1964 U.S. App. LEXIS 6356

CourtCourt of Appeals for the Fifth Circuit

DecidedFebruary 17, 1964

Docket20475

StatusPublished

Cited by1 cases

This text of 327 F.2d 986 (United States v. Ferguson Barnes and Esther Barnes) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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United States v. Ferguson Barnes and Esther Barnes, 327 F.2d 986, 13 A.F.T.R.2d (RIA) 729, 1964 U.S. App. LEXIS 6356 (5th Cir. 1964).

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Opinion

PER CURIAM.

This is an appeal by the Government from a judgment based on a jury verdict in a taxpayer’s suit for refund. The sole issue in the case is whether loans and advances made by the taxpayer to his controlled corporation, which became worthless claims in his hands on the corporation’s insolvency, can be deducted as a worthless debt incurred in the taxpayer’s trade or business. The undisputed facts required a directed verdict in favor of the United States. They “showed no *987 more than a loss by an investor in a corporation resulting from a transaction entered into to bring profit to the corporation, and thereby to its stockholders”, United States v. Byck, (5 Cir.) 325 F.2d 551, December 20, 1963. See Whipple v. Commissioner, 373 U.S. 193, 83 S.Ct. 1168, 10 L.Ed.2d 288.

The judgment is reversed and the case is remanded for the entry of a judgment for the United States.

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PER CURIAM.

This is an appeal by the Government from a judgment based on a jury verdict in a taxpayer’s suit for refund. The sole issue in the case is whether loans and advances made by the taxpayer to his controlled corporation, which became worthless claims in his hands on the corporation’s insolvency, can be deducted as a worthless debt incurred in the taxpayer’s trade or business. The undisputed facts required a directed verdict in favor of the United States. They “showed no *987 more than a loss by an investor in a corporation resulting from a transaction entered into to bring profit to the corporation, and thereby to its stockholders”, United States v. Byck, (5 Cir.) 325 F.2d 551, December 20, 1963. See Whipple v. Commissioner, 373 U.S. 193, 83 S.Ct. 1168, 10 L.Ed.2d 288.

The judgment is reversed and the case is remanded for the entry of a judgment for the United States.

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Bluebook (online)

327 F.2d 986, 13 A.F.T.R.2d (RIA) 729, 1964 U.S. App. LEXIS 6356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-ferguson-barnes-and-esther-barnes-ca5-1964.

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