Smith v. United States

BREWSTER, District Judge.

The above actions at law present the same issue. They were tried together upon stipulations and testimony, and may conveniently be disposed of in one opinion. The plaintiffs in each of the actions represent testators who, in 1932, owned stock in the Atlantic National Bank. In each case the plaintiffs seek to recover income tax assessed and paid upon 1932 income of his respective testator. The sole controversy is whether the taxpayer was entitled to deduct from the gross income the cost of his shares in the bank as a loss deductible under section 23 (e), of the Revenue…