Gottlieb Realty Co. v. Commissioner
United States Board of Tax Appeals
1. DEDUCTION - LOSS. - Held, that petitioner sustained a loss for the year in which its funds were wrongfully taken by misappropriation. 2. Id. - COMPENSATION. - Held, that the petitioner's claim or right of action against the now financially irresponsible persons who wrongfully took its funds did not defeat the asserted deduction in the year the petitioner's funds were wrongfully taken within the meaning of section 234(a)(4), Revenue Act of 1926. 3. NET LOSS. - Held,…
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1. DEDUCTION - LOSS. - Held, that petitioner sustained a loss for the year in which its funds were wrongfully taken by misappropriation. 2. Id. - COMPENSATION. - Held, that the petitioner's claim or right of action against the now financially irresponsible persons who wrongfully took its funds did not defeat the asserted deduction in the year the petitioner's funds were wrongfully taken within the meaning of section 234(a)(4), Revenue Act of 1926. 3. NET LOSS. - Held, similar losses in 1924 and 1925 were attributable to the operation of petitioner's business regularly carried on and…
1Opinion of the Court
*420OPINION.
Leech:
Although the Commissioner disallowed the claimed deduction of $10,175 as a loss sustained in 1926, on the ground that the misappropriation occurred in 1924, the parties have now stipulated that petitioner’s officers and directors wrongfully took that amount in 1926. The applicable provisions of the Revenue Act of 1926 are:
Sec. 234. (a) In computing tbe net income of a corporation subject to the tax imposed by section 230 there shall be allowed as deductions:
*******(4) Losses sustained during the taxable year and not compensated for by insurance or otherwise. * * *
The…
2Cases cited8 opinions
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- Burnet v. HuffSupreme Court of the United States · 1933
- Greenleaf Textile Corp. v. CommissionerUnited States Board of Tax Appeals · 1932
- Northway Sec. Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Peterson Linotyping Co. v. CommissionerUnited States Board of Tax Appeals · 1928
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3Cited by8 opinions
- Arcade Realty Co. v. CommissionerUnited States Tax Court · 1960
- Jeppsen v. CommissionerUnited States Tax Court · 1995
- Burke Grain Co. v. CommissionerUnited States Board of Tax Appeals · 1939
- Gottlieb Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Grenada Bank v. CommissionerUnited States Board of Tax Appeals · 1935
3 more not listed; retrieve them via the Exa API.