First Nat'l Bank v. Commissioner

*857OPINION.

Ajrundell:

In 1920 the First National Bank sold 108 shares of stock of the Traders Oil Co. for $6,480. This stock had been acquired by the bank in settlement of a debt, at a cost of $7,020. Consequently, on the sale a loss of $540 was sustained, for which it is entitled to a deduction for the year 1920. Instead of claiming a loss on this transaction the bank erroneously reported a profit of $1,080 due to using an incorrect cost basis. • The income should accordingly be reduced by the amount of $1,080, in addition to allowing the loss of $540.

The First National Bank claims a deduction…