Schlumberger Technology Corporation, Plaintiff-Appellee-Cross v. United States of America, Defendant-Appellant-Cross

THORNBERRY, Circuit Judge:

The instant matter represents another skirmish in the constant taxpayer-Government struggle over the definition of the term “capital asset,” a struggle generated by the advantages to taxpayers of capital gains and the corollary disadvantages of capital losses. The participants in the case at bar call upon us to determine whether taxpayer’s loss on unrepaid short term advances, evidenced by promissory notes, to subsidiary corporations were, in light of Corn Products Company v. Commissioner of Internal Revenue, 350 U.S. 46, 76 S.Ct. 20, 100 L.Ed. 29 (1955), deductible…