Rosenberg v. Commissioner
United States Tax Court
96 T.C. 451 (1991)
- Written by Eric Miller, JD
Facts
Prince David Inc. was formed in 1979. The corporation reported its income as a C corporation until November 30, 1982, when it elected to be taxed as an S corporation. As of that date, Prince David had a net operating loss carryover of $353,773 from the four previous tax years (1979 through 1982). On its 1984 tax return, Prince David excluded $303,513 from its gross income for costs incurred and deducted prior to November 30, 1982. The resulting amount was reflected in the 1984 personal income of Alex and Bertha Rosenberg (plaintiffs), shareholders in Prince David. The Commissioner of Internal Revenue (the commissioner) (defendant) assessed a deficiency, finding that the $303,513 was a carryover from Prince David’s C corporation years to an S corporation year, which the tax code expressly forbade. The Rosenbergs challenged the assessment in the United States Tax Court.
Rule of Law
Issue
Holding and Reasoning (Featherston, J.)
What to do next…
Here's why 834,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,500 briefs, keyed to 994 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
