Davis v. State Tax Commission

Edward H. Howell, Judge.

Plaintiffs filed this suit for a refund of income taxes paid for the tax year 1963.

In 1962 plaintiffs paid $24,000 federal income tax which resulted in their having an adjusted gross loss of $11,000 on their 1962 state income tax return. In 1963 the plaintiffs carried forward the net loss as a deduction for 1963 under the provisions of ORS 316.353. Also, in 1963 plaintiffs received a federal tax refund of $10,000 for 1962 federal taxes and did not report the tax refund as income for 1963.

The plaintiffs contend that the 1962 federal income tax refund of $10,000 is…