Clark v. Commissioner
United States Tax Court
1. Held, following Western Wine & Liquor Co., 18 T. C. 1090, that the loss sustained by petitioner on the sale of stock in American Distilling Company was a part of the cost of whiskey sold and not a short term capital loss. 2. Held, payments made by a taxpayer to a municipality to allow illegal operation of slot machines are not excludible from taxpayer's gross income and not deductible by him where State law proscribes operation of slot machines and arrangements with…
Read the full summary
1. Held, following Western Wine & Liquor Co., 18 T. C. 1090, that the loss sustained by petitioner on the sale of stock in American Distilling Company was a part of the cost of whiskey sold and not a short term capital loss. 2. Held, payments made by a taxpayer to a municipality to allow illegal operation of slot machines are not excludible from taxpayer's gross income and not deductible by him where State law proscribes operation of slot machines and arrangements with municipalities to allow their operation. Payments made to a municipality by others through the taxpayer as a conduit for…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The first question arises from the loss sustained by the petitioner on the sale of 50 shares of stock in the American Distilling Company. It is petitioner’s contention that the amount of the loss is deductible in full as a part of the cost of whiskey sold or as an ordinary and necessary business expense.
The ruling of the Court in Western Wine & Liquor Co., 18 T. C. 1090, in which case the author of this opinion filed a dissenting opinion, is controlling on the first issue here raised. In that case, on facts generally comparable to those here appearing, it was held…
2Cases cited4 opinions
- Lilly v. CommissionerSupreme Court of the United States · 1952
- Cohen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1949
- Western Wine & Liquor Co. v. CommissionerUnited States Tax Court · 1952
- Comeaux v. CommissionerUnited States Tax Court · 1948
3Cited by40 opinions
- Fuller v. CommissionerUnited States Tax Court · 1953
- Commissioner of Internal Revenue v. The Bagley & Sewall Co.Court of Appeals for the Second Circuit · 1955
- Bagley & Sewall Co. v. CommissionerUnited States Tax Court · 1953
- Gulftex Drug Co. v. CommissionerUnited States Tax Court · 1957
- Smith & Welton, Inc. v. United StatesDistrict Court, E.D. Virginia · 1958
35 more not listed; retrieve them via the Exa API.