S.F.H., Inc. (Formerly Sam Fortas Housefurnishing Company, Inc.) v. Commissioner of Internal Revenue

OPINION OF THE COURT

KALODNER, Circuit Judge.

The question presented is whether the Tax Court erred in holding that the appellant corporation was precluded by Section 382 of the Internal Revenue Code of 1954, 1 which prescribes “Special limitations on net operating loss carryovers,” from carrying over to its taxable year ended June 30, 1962, a net operating loss sustained in a prior taxable year, because it had sold all of the assets of its retail furniture business and ended the latter’s operation some eight months prior to the end of the taxable year.

Relevant to our disposition are these…