Hawley Inv. Co. v. Commissioner
United States Board of Tax Appeals
The net loss of one of the affiliated corporations for the year 1926, at which time it was not a member of the affiliated group, operates to reduce the consolidated net income for the year 1927 under section 206(b) of the Revenue Act of 1926, even though such corporation having the net loss in 1926 also had a net loss in 1927. Ben Ginsburg Co.,19 B.T.A. 81, followed.
1Opinion of the Court
*955OPINION.
McMahon :
The sole question here presented is whether, in computing the consolidated income of the three petitioners for the year 1927, there should be reflected the net loss of $25,216.40 sustained by the Butler-Yeitch Company for the year 1926, in which year that company was not afliliated with the other two petitioners. The Butler-Yeitch Company also had a not loss for the year 1927, without considering the net loss for 1926.
Section 206 (b) of the Revenue Act of 1926 provides:
If, for any taxable year, il: appears upon the production of evidence satisfactory to the Commissioner that…
2Cited by1 opinion
- Hawley Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1931