Eagleton v. Commissioner
United States Board of Tax Appeals
1. The respondent disallowed a deduction for loss arising out of investment in stock on the ground that the alleged loss in the taxable year was not substantiated. Held, the evidence is insufficient to show that the loss was sustained in the taxable year and the disallowance of the claimed deduction is sustained. 2. Petitioner during the taxable year gave checks to an attorney employed by him which were never cashed and which were returned to petitioner.
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1. The respondent disallowed a deduction for loss arising out of investment in stock on the ground that the alleged loss in the taxable year was not substantiated. Held, the evidence is insufficient to show that the loss was sustained in the taxable year and the disallowance of the claimed deduction is sustained. 2. Petitioner during the taxable year gave checks to an attorney employed by him which were never cashed and which were returned to petitioner. Petitioner credited the employee in the following year on the books of a newly formed partnership. Held that since the checks were never…
1Opinion of the Court
*556OPINION.
HaRRon :
Issue 1. — The first question for determination is whether the petitioner is entitled to deduct from gross income of the year 1932 the amount of $25,000, his investment in the preferred stock of the Bethlehem Pipe Fittings Corporation. Respondent disallowed the claimed deduction for the reason that it was “not substantiated.” ■
Section 23 (e) (2) of the Revenue Act of 1932 allows deductions from gross income for losses sustained during the tamable year if incurred in any transaction entered into for profit. Article 174 of Regulations 77 of the Bureau of Internal Revenue sets…
2Cases cited1 opinion
- United States v. MitchellSupreme Court of the United States · 1926
3Cited by23 opinions
- Diamond v. CommissionerUnited States Tax Court · 1971
- Lashells' Estate v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1953
- Bryant v. CommissionerUnited States Tax Court · 1966
- Hibler v. CommissionerUnited States Tax Court · 1966
- Weber v. CommissionerUnited States Tax Court · 1978
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