E. K. Wood Lumber Co. v. Commissioner

1. Where oral negotiations for sale of timber land were commenced in 1917, followed by correspondence indicating further negotiations, the petitioner's board of directors authorized execution of deed on December 31, 1917, and deed was acknowledged and delivered and entire purchase price paid on January 2, 1918, as previously agreed, held, for income-tax purposes, the sale was completed in 1918. 2. Current profits, or profits earned during the taxable year, are not includable in invested capital for such year. 3. Held that the transfer of property on which petitioner claims a loss was a bona…