Montgomery v. Commissioner
United States Board of Tax Appeals
1. Where the petitioner, who operated a garage and automobile sales agency, purchased stock of an automobile manufacturing company in order to acquire an agency contract, which stock later became worthless, held that the loss thus sustained should be included in the computation of a net loss under section 204(a) of the Revenue Act of 1921. Philip Kobbe Co.,4 B.T.A. 663, followed. 2. The net loss provided for in section 204 means only net losses resulting from the operation…
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1. Where the petitioner, who operated a garage and automobile sales agency, purchased stock of an automobile manufacturing company in order to acquire an agency contract, which stock later became worthless, held that the loss thus sustained should be included in the computation of a net loss under section 204(a) of the Revenue Act of 1921. Philip Kobbe Co.,4 B.T.A. 663, followed. 2. The net loss provided for in section 204 means only net losses resulting from the operation of a trade or business regularly carried on by a taxpayer. A net loss so resulting may not be increased by nonbusiness…
1Opinion of the Court
*1310OPINION.
Lansdon:
We have found from the petitioner’s uncontradicted testimony that he purchased stock of the Handley-Knight Co. in order to secure a sales agency for the new automobile to be manufactured. For several years petitioner had been the agent for Willys-Knight and Willys-Overland automobiles which line did not include a seven-passenger model. The Handley-Knight Co. proposed to manufacture a seven-passenger automobile equipped with a Willys-Knight motor, which petitioner expected to meet a demand for seven-passenger cars which he had been unable to supply. In Philip Kobbe Co., 4 B. T.…
2Cited by4 opinions
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- Montgomery v. CommissionerUnited States Board of Tax Appeals · 1929