Burnet v. Clark

Respondent Clark’s income tax return for 1921 showed net loss exceeding $17,000; for 1922 net loss of about $5,000. He claimed these should be deducted from gains reported for 1923, under § 204 (a) and (b),* 1 Revenue Act of 1921, c. 136, 42 Stat. 227, 231. The Commissioner of Internal Revenue ruled otherwise and the Board of Tax Appeals approved. The Court of Appeals, District of Columbia, reversed the Board’s action. [61 App. D. C. 217; 59 F. (2d) 1031.] The matter is here upon certiorari.

From 1899 until 1922 respondent was closely connected with the Bowers Southern Dredging- Company which…