Hoffman v. Commissioner
United States Board of Tax Appeals
DEDUCTION - LOSS; ABANDONMENT OF REAL ESTATE. - Where the interest of the petitioners in improved real estate owned by them subject to a mortgage became worthless in 1934, they are entitled to deduct their loss in that year under section 23(e)(2), Revenue Act of 1934, although title remained in them until foreclosure was completed in the following year, despite their efforts to abandon their interest in the property during 1934.
1Opinion of the Court
*462OPINION.
Murdock:
The petitioners claim a deduction for 1934 under sec-tion23 (e) (2) of the Revenue Act of 1934. Although the respondent is willing to concede a capital loss in 1935$ whenititle waslosl, he contends 'that there could be no loss from the ownership of real estate while title was retained. The statute allows a deduction for any loss sustained during the taxable year, if incurred in a transaction entered into for profit and not compensated for by insurance or otherwise. It does not distinguish between real and personal property.
The fact is clearly established that the interest of…
2Cases cited1 opinion
- Lucas v. American Code Co.Supreme Court of the United States · 1930
3Cited by13 opinions
- Parker v. DelaneyCourt of Appeals for the First Circuit · 1950
- A. J. Industries, Inc. v. United StatesCourt of Appeals for the Ninth Circuit · 1974
- Commissioner of Internal Revenue v. McCarthyCourt of Appeals for the Seventh Circuit · 1942
- Middleton v. CommissionerUnited States Tax Court · 1981
- Commissioner of Internal Revenue v. HoffmanCourt of Appeals for the Second Circuit · 1941
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