379 Madison Avenue v. Commissioner of Internal Revenue

SWAN, Circuit Judge., The taxpayer was incorporated on June 5, 1922, to own, lease, and manage improved or unimproved real estate and to erect, maintain, and manage buildings. It immediately acquired a building lease on property located on Madison avenue in the city of New York, began construction of an office building thereon, and engaged in finding tenants for the building to be erected. The petitioner claims that during the year 1922 its expenses exceeded its income, and it seeks to deduct its 1922 “net loss” from its 1923 income pursuant to section 204 (b) of the Revenue Act of 1921 (42…