Marston v. Commissioner of Internal Revenue

MANTON, Circuit Judge.

In his income tax for the year 1928, the petitioner deducted a loss due to the sale of stocks. The Commissioner disallowed this deduction and was sustained by the Board of Tax Appeals.

In 1923, the petitioner acquired 11,000 shares of preferred stock and 22,000 shares no par common stock of Moose Mountain, Limited, an Ontario corporation, owning iron ore lands in Ontario. This was an un listed stock, closely held, and was worth par or above prior to 1928. In 1927 high-grade iron ore fields were discovered, and the low-grade ore fields of the Moose Mountain, Limited, lost…