Mack v. Commissioner

SWAN, Circuit Judge.

The deficiency in dispute resulted from the disallowance by the commissioner of a deduction of $41,600 claimed in the taxpayer’s 1937 return as an ordinary loss, deductible under section 23 (e) (2) of the Revenue Act of 1936, 26 U.S.C.A. Int.Rev. Code § 23 (e) (1), in respect to 416 shares of preferred stock of William B. Nichols & Co. This corporation was engaged in the business of industrial management and engineering. Its income was derived principally from fees for such services. It was still in business at the time of the hearing before the Board. In the latter part…