Grady Whitlock Leasing Corporation - Page 4

                                        - 4 -                                         
               indirectly, between persons specified in any of the                    
               paragraphs of subsection (b). * * *                                    
          Section 267(b)(3) specifies as persons for whom a loss will be              
               Two corporations which are members of the same                         
               controlled group (as defined in subsection (f));                       
          Section 267(f)(1) incorporates the provisions of section 1563(a),           
          which defines a controlled group as a group of corporations, each           
          owned more than 50 percent, in voting power or value, by a common           
          parent corporation, or five or fewer individuals.  In this case,            
          the same individual owned 100 percent of both petitioner and                
          Realty, and thus petitioner and Realty were members of a                    
          controlled group.  Sec. 267(b)(3), (f)(1).  The $3,325 loss arose           
          from a sale or exchange of property.  The plain language of the             
          statute does not allow petitioner's loss.  Petitioner's argument            
          that there is no evidence of collusion on the sale is simply                
               Insurance Premiums                                                     
               Section 264(a)(1) provides that no deduction shall be                  
          allowed for:                                                                
               Premiums paid on any life insurance policy covering the                
               life of any officer or employee, or of any person                      
               financially interested in any trade or business carried                
               on by the taxpayer, when the taxpayer is directly or                   
               indirectly a beneficiary under such policy.                            
          Here, the insurance policy covered the life of the principal                
          officer and shareholder of petitioner.  Since petitioner was the            
          beneficiary of the policy, the payment of the premiums may not be           

Page:  Previous  1  2  3  4  5  6  Next

Last modified: May 25, 2011