Finch v. Commissioner
United States Tax Court
Decedent died within 3 years from the date of a conditional sales contract to purchase a business. After decedent died, the seller exercised his election under the contract. He elected to repossess the business rather than require decedent's heirs to continue to make payments under the contract. There was a loss of decedent's investment.
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Decedent died within 3 years from the date of a conditional sales contract to purchase a business. After decedent died, the seller exercised his election under the contract. He elected to repossess the business rather than require decedent's heirs to continue to make payments under the contract. There was a loss of decedent's investment. Held: The business did not revert to the seller immediately upon or as of decedent's death; the reversion was after his death; the loss was not sustained during the taxable period which ended with his death. Respondent's disallowance of loss deduction is…
1Opinion of the Court
OPINION.
HarRon, Judge:
The petitioners claim deduction for a loss under section 23 (e) of the 1939 Code in the amount of $9,783.48 in the taxable period which ended with the decedent’s death, which sum includes an alleged original investment of $300. There is no dispute about the amount of the loss. The question to be decided is whether the loss was sustained during the taxable period which began on January 1, 1948, and ended on June 27,1948.
The Commissioner has determined that the loss was not sustained during the above period, and that it did not occur by reason of the death of the decedent.…
2Cases cited2 opinions
- Howe v. CommissionerUnited States Tax Court · 1951
- National Metropolitan Bank of Washington v. United StatesUnited States Court of Claims · 1953
3Cited by1 opinion
- Finch v. CommissionerUnited States Tax Court · 1955