Snively v. Commissioner

OPINION.

Rice, Judge:

The respondent argues that under the provisions of section 24 (b)1 of the Code, Lake Eloise may not deduct a loss on account of the sale of its assets to the Snively Trust because it arose from a sale between a corporation and an individual, or group of individuals, who were indirect owners of more than 50 per cent in value of Lake Eloise’s stock. Section 24(b) (1) (B). Or, in the alternative, the loss in not deductible because it arose from a sale between members of a family. Section 24 (b) (1) (A).

The respondent’s argument with respect to this first issue is that the…