McCaughn v. Ludington

delivered the' opinion of the Court.

This case arises under the income tax provisions of the Revenue Act of 1918, 1 and presents another aspect of the question relating to deductible losses sustained from the sale of property acquired before March 1, 1913, which was involved in United States v. Flannery, just decided, ante, p. 98.

Ludington bought, prior to March 1, 1913, certain corporate stock for $32,500. Its market value on March 1, 1913, was $37,050. He sold it in 1919 for $3,866.91, which was $28,633.09 less than its purchase price, and $33,- 183.09 less than its market value on March 1,…