Hygrade Food Products Corp. v. Commissioner

To taxpayer’s contention that it sustained a loss under § 23(f) of the Revenue Act of 1934, 26 U.S.C.A. Int.Rev.Code, § 23 (f), as interpreted in Regulation 86, Article 23(e)-3, it is a sufficient answer that taxpayer did not in fact in the taxable year abandon the plant or sell it at scrap value, but sold it while the plant was still being operated. What taxpayer might have done is irrelevant. What it did is the controlling factor. The Regulation creates an exception which is met only in the event of permanent abandonment or permanent devotion of the property to a radically different use;…