Reed's Estate v. Scofield, Collector of Internal Revenue

The sole question in this case involves the correctness of the finding of the trial Court, against the contention of the taxpayer suing for a refund, that such plaintiff had failed to show that an oil and mineral lease became finally worthless in the year 1941. The establishment of loss in such year was essential to the plaintiff’s claim for recovery since the deduction therefor was claimed for the year 1941. The Commissioner had allowed the claim for the year 1940 but had disallowed it as accruing from a loss sustained during 1941. Upon consideration of the facts and circumstances in the…