Finkelstein v. Commissioner

Decided February 7, 1928

United States Board of Tax Appeals · decided 1928-02-07

Upon liquidation in 1922 of a corporation in which petitioner was a stockholder, he sustained a loss of $14,165.24 upon his investment. Held: that such loss was not incurred by him in a trade or business regularly carried on and may not be carried forward and deducted from income for the year 1923 under the provisions of section 204 of the Revenue Act of 1921.

Cited by 8 later decisions — most recently January 1931

Relies on Harrington v. Commissioner · Pabst v. Commissioner · Gutman v. Commissioner

Good law ✅— No negative treatment on recordhow we know

Decided 1928-02-07

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¶1 *587OPINION.

Littleton :

¶2From the evidence in this proceeding, the Board is of the opinion that the question involved differs in no material respect from similar questions involved in other cases wherein the Board held that losses arising from investments in stock of a corporation are not losses arising from the operation of a trade or business regularly carried on within the meaning of the statute and may not be carried forward and deducted from income for the succeeding taxable year. J. J. Harrington, 1 B. T. A. 11; Wm. J. Robb, 5 B. T. A. 827; Fridolin Pabst, 6 B. T. A. 843; Harry J. Gutman, 7 B. T. A. 500; W. C. Harris, 8 B. T. A. 1234.

¶3 *588We are of the opinion that the Commissioner correctly declined to include the amount of $14,165.24 in determining whether a net loss had been sustained in the year 1922 which might be carried forward and deducted from 1923 income.

¶4Reviewed by the Board.

¶5Judgment will be entered for the respondent.