875 Park Avenue Co. v. Commissioner of Internal Revenue

CHASE, Circuit Judge.

The taxpayer is a New York corporation which owns all of the stock of its subsidiary, the-1040 Park Avenue Corporation. The two corporations filed consolidated income tax returns for the year 1945 and the taxpayer claimed as a deduction under Section 23(f) and (g) (2) of the Internal Revenue Code, 26 U.S. C.A. § 23 (f), (g)(2), a loss to the subsidiary caused by alleged worthlessness of stock owned by it in the Park Avenue and 86th Street Corporation.

In 1923 the subsidiary erected an apartment house on its land at 86th Street and Park Avenue, New York City. After…