Commissioner of Internal Revenue v. Jack Jordan Ammann and Dorothy Lee Ammann

TUTTLE, Circuit Judge.

This is a petition by the government for a review of a decision of the Tax Court.

The question here presented for our determination is whether a taxpayer who sold Section 1170') 1 assets for a net gain in 1949, and who is thus entitled to capital gains treatment on such gain must offset his share of Section 117(j) net losses, suffered by his partnership, against such individual gain to arrive at the net figure contemplated by this Section, or whether he can get the benefit of capital gain treatment on the gain he enjoyed individually, and also, without combining the two,…