Lurie v. Commissioner of Internal Revenue

MATHEWS, Circuit Judge.

Notes issued by Hilton Hotel Company, a corporation, in 1938 were acquired by petitioner, Babette G. Lurie, in 1938 and 1939 and were held by her until their retirement. The notes were registered in 1940. They were retired in 1941, more than 24 months after their acquisition by petitioner and less than 18 months after their registration. From their retirement a gain resulted. Petitioner, in computing her net income for 1941, took into account only 50% of the gain so resulting. Respondent, the Commissioner of Internal Revenue, held that 100% thereof should have been…