Johnston v. Commissioner
United States Board of Tax Appeals
DEDUCTIONS - STOCK LOSSES - PARTNERSHIP AND INDIVIDUAL RETURNS - SECTION 23(r)(1), REVENUE ACT OF 1932. - A partner entitled as such to a share of the profits of the partnership upon its sale of noncapital assets, can not, in computing his individual taxable income, reduce that share of profits by the amount of his loss upon sale of other similar assets, owned by himself individually.
1Opinion of the Court
*278OPINION.
Leech :
Only $512.68 of the total income of the partnership distributable to petitioner was reported by the latter on his return. This resulted from petitioner’s reducing his distributable share shown on the partnership return by using $2,147.89 of a loss of $2,431.25, sustained by him personally upon sale of noncapital assets consisting of securities, to reduce, to that extent, his income from the partnership. This was done on the theory that the partnership income contained an item of gain of $4,295.78 from the sale of similar non-capital assets and that one-half, or $2,147.89, of…
2Cases cited4 opinions
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- Tiger v. Western Investment Co.Supreme Court of the United States · 1911
- Cope v. CopeSupreme Court of the United States · 1891
- Shearer v. BurnetSupreme Court of the United States · 1932
3Cited by4 opinions
- Klingenstein v. United StatesUnited States Court of Claims · 1937
- Johnston v. CommissionerUnited States Board of Tax Appeals · 1936
- Klauber v. CommissionerUnited States Board of Tax Appeals · 1936
- Winmill v. CommissionerUnited States Board of Tax Appeals · 1937