Stephen Looney on Hargis v. Commissioner and Tinsley v. Commissioner
The Tax Court disallowed losses claimed by shareholders of S corporations because it found that the shareholders did not establish they had sufficient basis in S corporations to claim such losses. In both of these cases, the Tax Court cites the actual economic outlay doctrine in determining whether the shareholders are entitled to basis for indebtedness of the S corporations to the shareholders within the meaning of IRC Section 1366(d)(1)(B).
Stephen R. Looney received his B.A., with honors, in Accounting and Business Administration from Drury College in 1981 and earned his J.D., cum laude, from the University of Missouri-Columbia in 1984, where he was also a member of the Order of the Coif and the Missouri Law Review. He received his Master's in Taxation from the University of Florida in 1985, where he graduated first in his class. He practices in the areas of tax, corporate, partnership, business and health care law, with an emphasis in entity formations, acquisitions, dispositions, redemptions, liquidations and reorganizations. His clients include closely held businesses, with an emphasis in medical and other professional practices. He is a Florida Board Certified Tax Lawyer, and is a member of The Florida Bar Association, the State Bar of Texas and the Missouri Bar Association. Additionally, he has his CPA Certificate, and is a member of the Missouri Society of CPAs. He is a past-chair of the S Corporations Committee of the American Bar Association Tax Section. Additionally, he is on the Board of Advisors and Department Heads for the Business Entities journal where he also serves as one of the editors for the Current Developments column. He is a Fellow of the American College of Tax Counsel and is listed in Best Lawyers in America in Taxation. He writes and speaks extensively on a nationwide basis on a variety of tax subjects. He is the co-author of Tax Planning for S Corporations (Matthew Bender). His articles have appeared in a number of professional publications, including the Journal of Taxation, The Tax Lawyer, the Business Entities Journal, the Journal of S Corporation Taxation, the Journal of Partnership Taxation, and the Journal of Corporate Taxation.
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