Southern Coast Corp. v. Commissioner

OPINION.

OppeR, Judge:

The question is whether amounts concededly expended by petitioner are deductible only as a short term capital loss by reason of the provisions of section 117 (g) (2), Internal Revenue Code.1 This in turn depends, as the case is presented, on whether it can be said that within the meaning of that section the expenditures in question were “losses attributable to the failure to exercise” an option “to buy * * * property.”

Petitioner does not question that the natural gas it hoped to acquire was property, but urges that the section in dispute applies only to losses…