J. Weingarten, Inc. v. Commissioner
United States Board of Tax Appeals
1. In 1937 the petitioner, at a cost of $20,413.80, acquired certain contracts from the Keedoozle Corporation for the operation of food stores by the use of electrical devices. At the time such method of operation was in an experimental stage. During the latter part of 1937 the Keedoozle Corporation abandoned its efforts to perfect the electrical devices. The petitioner, upon learning of such abandonment, charged off as a loss its investment in the contracts.
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1. In 1937 the petitioner, at a cost of $20,413.80, acquired certain contracts from the Keedoozle Corporation for the operation of food stores by the use of electrical devices. At the time such method of operation was in an experimental stage. During the latter part of 1937 the Keedoozle Corporation abandoned its efforts to perfect the electrical devices. The petitioner, upon learning of such abandonment, charged off as a loss its investment in the contracts. Held, that the loss was sustained in 1937. 2. In 1937 the petitioner elected to redeem its outstanding 8 percent and 7 percent…
1Opinion of the Court
*804OPINION.
Smith:
The first question for decision is whether the petitioner is entitled to deduct from gross income $20,413.80 invested in the Kee-doozle contracts. The petitioner contends that the loss was sustained in 1937, since in that year Clarence Saunders, acting for the Keedoozle Corporation, had practically acknowledged the worthlessness of the Keedoozle system by its abandonment. It therefore charged off its investment as a loss in 1937.
The respondent contends that the loss was not sustained in 1937 by reason of the fact that in 1938 Saunders continued his efforts to make the…
2Cited by5 opinions
- Hooks v. CommissionerUnited States Tax Court · 1944
- Humphryes Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- J. Weingarten, Inc. v. CommissionerUnited States Board of Tax Appeals · 1941
- Malter v. CommissionerUnited States Tax Court · 1967
- New York City Omnibus Corp. v. CommissionerUnited States Tax Court · 1948