Benjamin F. Haas and Addie R. Haas v. Commissioner of Internal Revenue

WATERMAN, Circuit Judge.

Petitioners, husband and wife, seek a reversal of the Tax Court decision sustaining the Commissioner’s disallowance of a loss deduction claimed by them for the years 1948, 1949 and 1950.

In 1933 Mr. Haas organized Oxford Looms, Inc., a woolen mill. Although he had all of its authorized common stock, consisting of 500 shares, issued to his daughter as a gift, the operation and management of Oxford, since the time of its incorporation, has been under his direct supervision and control; and both Haas and his wife, from the very beginning, have advanced considerable sums of…