Thomason v. Commissioner
United States Board of Tax Appeals
1. Petitioner, in order to enable a holding company, to be formed by him and his associate, to borrow $1,000,000, contracted to form a new corporation which would issue $1,000,000 of its debentures to the holding company.
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1. Petitioner, in order to enable a holding company, to be formed by him and his associate, to borrow $1,000,000, contracted to form a new corporation which would issue $1,000,000 of its debentures to the holding company. In the same contract petitioner agreed to transfer to the lender 5,000 shares of the capital stock of the new corporation, which cost him $83,333.33, and the lender agreed to pay therefor as "a further consideration" the sum of $10,000. Held, that the contract is entire and not severable; that the cash received by petitioner was not the sole consideration for the transfer of…
1Opinion of the Court
*580OPINION.
Mellott :
We shall discuss separately the two questions involved. The first is whether a deductible loss occurred in connection with the sale of the stock. Petitioner contends that the above facts show that he sustained a loss in 1928 of $73,333.33 and that such loss is deduct*581ible under section 23 (e) of tbe Revenue Act of 1928. The section relied upon allows as a deduction from gross income “ losses sustained during the taxable year * * * (1) if incurred in trade or business; or (2) if incurred in any transaction entered into for profit, though not connected with the trade or…
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3Cited by12 opinions
- Nat Harrison Assoc., Inc. v. CommissionerUnited States Tax Court · 1964
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