Leslie v. Commissioner
United States Tax Court
1. Deduction -- Loss -- Transfer Entered into for Profit -- Residence. -- A residence of the petitioner was damaged by a hurricane in 1938 and was never thereafter occupied. A real estate agent was allowed to try to find a purchaser after the hurricane, but never succeeded.
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1. Deduction -- Loss -- Transfer Entered into for Profit -- Residence. -- A residence of the petitioner was damaged by a hurricane in 1938 and was never thereafter occupied. A real estate agent was allowed to try to find a purchaser after the hurricane, but never succeeded. The property was transferred to the mortgagee in 1940. Held, the loss, if any, was not from a transaction entered into for profit within section 23 (e) (2). 2. Deduction -- Nonbusiness Expenses. -- Expenses of a caretaker for the property after the hurricane were not deductible under section 23 (a) (2) as ordinary and…
1DissentDisney, J.
Prior to the amendment of section 23 (a) (2) of the Internal Revenue Code by section 121 of the Revenue Act of 1942, expenses of caring for property were deductible only if business property, for the simple reason that section 23 (a) (2) provided for the deduction only of expenses “paid or incurred in carrying on any trade or business” — although section 23 (e) provided for deduction of losses incurred either in trade or business or in a transaction entered into for profit. This distinction led to such decisions as that in Higgins v. Commissioner, 312 U. S. 212. It is apparent from the…
2Cases cited2 opinions
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Evans v. EvansSupreme Court of Iowa · 1926