Carpenter v. Commissioner
United States Board of Tax Appeals
Where the petitioner sold his interest in a partnership in order to avoid further personal losses, taking the notes of the surviving partners therefor, secured by the assignment of their partnership interests, and he claimed a deduction in the year of such sale upon the disposition of his partnership interest, which deduction was allowed, the further loss sustained in the following taxable period by reason of such notes becoming worthless is not a "net loss" within the…
Read the full summary
Where the petitioner sold his interest in a partnership in order to avoid further personal losses, taking the notes of the surviving partners therefor, secured by the assignment of their partnership interests, and he claimed a deduction in the year of such sale upon the disposition of his partnership interest, which deduction was allowed, the further loss sustained in the following taxable period by reason of such notes becoming worthless is not a "net loss" within the meaning of section 117(a) of the Revenue Act of 1928, since it is "not attributable to the operation of a trade or business…
1Opinion of the Court
OPINION.
MoRRis:
This proceeding is for the redetermination of a deficiency in income tax of $655.43 for the calendar year 1930, presenting for consideration the sole question whether or not a loss of $148,355.65 is a “ net loss ” within the meaning of section 117 (a) of the Revenue Act of 1928 and may be brought forward and deducted in the computation of taxable net income for the calendar year 1930 under the facts and circumstances hereinafter set forth.
The petitioner, an individual, resident of San Francisco, California, was a general partner of the firm of Roberts, Carpenter & Co., members…
2Cited by2 opinions
- Carpenter v. CommissionerUnited States Board of Tax Appeals · 1935
- Russell v. CommissionerUnited States Board of Tax Appeals · 1936