Elkins v. Commissioner
United States Board of Tax Appeals
1. CAPITAL NET LOSSES. - Held, that section 208(c) of the 1924 Act does not permit the taxpayer to elect how capital net losses shall be treated in computing the tax liability. 2. DEDUCTIONS - CONTRIBUTIONS. - During 1924 petitioner made contributions, totaling $8,632.65, of the kind described as deductible under section 214(a)(10) of the 1924 Act.
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1. CAPITAL NET LOSSES. - Held, that section 208(c) of the 1924 Act does not permit the taxpayer to elect how capital net losses shall be treated in computing the tax liability. 2. DEDUCTIONS - CONTRIBUTIONS. - During 1924 petitioner made contributions, totaling $8,632.65, of the kind described as deductible under section 214(a)(10) of the 1924 Act. During the same year petitioner sustained a capital net loss and her tax must be computed pursuant to section 208(c), i.e., the normal and surtaxes must be computed upon her "ordinary net income" after excluding the capital net loss and such total…
1Opinion of the Court
*573OPINION.
Teussell:1
This proceeding presents for our determination two questions of law. The first issue is whether petitioner may elect to treat the loss of $127,259.41 sustained in 1924 as an ordinary loss deduction from gross income instead of having the normal and surtax on her “ ordinary net income ” reduced by only 12½ per cent of such loss, which is admitted to be a capital net loss.
The law applicable to this issue is found in section 208 of the Revenue Act of 1924, as follows:
Sec. 208. (a) For the purposes of this title—(1) The term “ capital gain ” means taxable gain from the sale or…
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