Higgins v. Smith

I think the judgment should be affirmed. To reverse it is to disregard a rule respecting the separate entity o" corporations having basis in logic and practicality and *481which has long been observed in the administration of the revenue acts.

Since the inception of the system of federal income taxation, capital gains have been taxed and certain capital losses have been allowed as credits against such gains. In order that this system might be practical it has been necessary to select some event as the criterion of realization of gain or loss. The revenue laws have selected the time of the closing…