Electro-Chemical Engraving Co. v. Commissioner

This' is a companion case to Helvering v. Hammel, ante, p. 504.

The question is whether the loss suffered by petitioner on foreclosure sale of his mortgaged property, acquired for profit, may be deducted in full from gross income or only to the extent provided by § 117 (d) of the 1934 Revenue Act. The statutory provisions involved are those of the 1934 Act relating to capital gains or losses, particularly “losses from sales or exchanges of capital assets” considered in the Hamrnel case which are made applicable to petitioner, a corporation, by § 23 (f) (j).

The Board of Tax Appeals ruled that…