Alson N. Johnson and Margaret C. Johnson v. Commissioner of Internal Revenue

Accepting the facts of this case as they are quite faithfully laid out in the majority opinion, I would reverse the Tax Court’s holding that the appellant-taxpayer’s 1971 loss of $18,830.31, conceded by the Commissioner, was not deductible because it was “compensated for by insurance”, citing Internal Revenue Code, 1954, Section 165(a).*

The issue on the present appeal is accurately put by the Commissioner:

“Whether the Tax Court correctly determined that the taxpayer was not entitled to a deduction for a loss resulting from his investment in a partnership because his loss was compensated for…