WA Drake, Inc. v. Commissioner of Internal Rev.

HUXMAN, Circuit Judge.

The question in this case is whether a loss sustained by petitioner as the result of the sale of a farm during the tax year in question was deductible under Section 24(b) (1) (B) of the Internal Revenue Code, 26 U.S.C.A.Int.Rev.Code, § 24. 1

Petitioner was a family corporation largely created for the purpose of handling the assets left by W. A. Drake, who died intestate. The assets of the corporation consisted mostly of farm lands. Included among them was a farm known as the Anderson farm. Petitioner entered into a written agreement with Frank L. Bartels on October 11,…