Remington Rand, Inc. v. Commissioner of Internal Revenue

(after stating the facts as above). It is unnecessary to demonstrate by specific reference to the provisions of the Revenue Act of 1918 (40 Stat. 1057) that generally gains from sales made within the tax year must be included in taxable income and that losses on sales may be deducted from gross income. If an individual taxpayer had purchased the stock of this subsidiary company for $45,000 in 1917 and had sold it in 1920 for $60,000, he would have derived a taxable gain of $15,000 in the latter year, and the fact that during his period of ownership the corporation had accumulated net profits,…