McLaughlin v. Pacific Lumber Co.

Respondent brought this action, in the district court for northern California, to recover $143,122.23 it had paid as income tax for 1923. The complaint alleges facts upon which respondent claims to have been overassessed in that sum as a result of failure to take into account deductible losses. One loss ($479,625) resulted from the liquidation in 1923 of A. F. Thane & Company, a wholly owned subsidiary. The other ($953,134.49) was the indebtedness of that company to respondent, ascertained to be worthless and charged off by the latter in that year. Petitioner’s answer put in issue some, and…