Cavedon v. Commissioner
United States Board of Tax Appeals
Held, that losses sustained by the petitioner in 1927 and 1928 as guarantor of obligations of two corporations, from loans made to one corporation, from his investment in the second mortgage of one corporation, and by virtue of the fact that the stock he held in one corporation became worthless, did not result in net losses within the meaning of section 117 of the Revenue Act of 1928, since they were not attributable to the operation of a trade or business regularly carried…
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Held, that losses sustained by the petitioner in 1927 and 1928 as guarantor of obligations of two corporations, from loans made to one corporation, from his investment in the second mortgage of one corporation, and by virtue of the fact that the stock he held in one corporation became worthless, did not result in net losses within the meaning of section 117 of the Revenue Act of 1928, since they were not attributable to the operation of a trade or business regularly carried on by the petitioner, notwithstanding that he was an officer, director, and dominant factor in these and other…
1Opinion of the Court
*367OPINION.
McMahon :
The question here presented is whether the petitioner sustained net losses during the years 1927 and 1928, within the mean*368ing of section 117 of the Revenue Act of 1928, which may be applied as deductions against the petitioner’s income for the year 1929. Portions of section 117 of the Revenue Act of 1928 are set forth in the margin.1 See art. 651, Reg. 71, as amended by T.D. 4849. The definition of “ net loss ” is substantially the same in the Revenue Act of 1926 as it is in the Revenue Act of 1928.
The net loss of $8,662.75 shown by petitioner’s return for the year 1927 was…
2Cases cited5 opinions
- Burnet v. ClarkSupreme Court of the United States · 1932
- Dalton v. BowersSupreme Court of the United States · 1932
- Security First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1933
- Powell v. CommissionerUnited States Board of Tax Appeals · 1932
- Rhinelander v. CommissionerUnited States Board of Tax Appeals · 1934
3Cited by1 opinion
- Cavedon v. CommissionerUnited States Board of Tax Appeals · 1934