United States v. Jackson Oldsmobile, Inc. ( 1967 )

COLEMAN, Circuit Judge.

This appeal is from a District Court Judgment which allowed a corporate income taxpayer to carry over 1953 and 1954 net operating losses and deduct them from profits earned during 1956 and 1957. The thorough, exhaustive findings and conclusions of the able District Judge appear in a published opinion, 237 F.Supp. 779 (1964).

The respective positions of the taxpayers and the Government have been thoroughly briefed and argued to this Court. Upon mature consideration, we agree with the decision below that the taxpayer was entitled to the carry over. Consequently, no good purpose is to be served by preparing and publishing a duplicate opinion.

Suffice it to say, we agree with the District Court that under all the facts of this cáse, the principle of Libson Shops, Inc. v. Koehler, 353 U.S. 382, 77 S.Ct. 990, 1 L.Ed.2d 924 (1957) did not bar this carry over, and we further agree that there was not a defacto liquidation within the rule of Wier Long Leaf Lumber Co. v. Commissioner of Internal Revenue, 5 Cir., 1949, 173 F.2d 549.

We appreciate the argument of the Government that the outcome permits the minority stockholder, Jackson, in the ultimate, to enjoy a tax benefit of a kind not usually encountered. Under the law and the particular facts of this case, however, we feel that this consideration cannot affect the result reached. If the result has any material importance, as it may have on the application of existing carry over tax statutes to particular corporate operations then the problem is a legislative one.

The judgment of the District Court is

Affirmed.