Emmet v. Commissioner
United States Tax Court
Upon the record, held, petitioners did not appropriate their former residential property to an income-producing purpose prior to its sale in accordance with section 23 (e) (1) of the Internal Revenue Code and section 29.23 (e)-1 of Regulations 111 and, therefore, are not entitled to deduct from their income the loss incurred through such sale; held, further, since petitioners failed to establish the adjusted basis of their property at the time it purportedly was converted to…
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Upon the record, held, petitioners did not appropriate their former residential property to an income-producing purpose prior to its sale in accordance with section 23 (e) (1) of the Internal Revenue Code and section 29.23 (e)-1 of Regulations 111 and, therefore, are not entitled to deduct from their income the loss incurred through such sale; held, further, since petitioners failed to establish the adjusted basis of their property at the time it purportedly was converted to an income-producing purpose, they did not prove any deductible loss from the sale of the property.
1Opinion of the Court
OPINION.
TTtt.t., Judge:
The first question for consideration is whether petitioners appropriated their former residential property to an income-producing purpose prior to its sale. If they did not so convert it, no loss from the sale would be deductible under section 23 (e) (1) of the Internal Revenue Code and section 29.23 (e)-l of Regulations 111.1 If they did so convert it, such loss as may be determined from the evidence, if any, from the sale of the property is properly deductible for income tax purposes in 1942. Our primary consideration, therefore, is whether the property was converted…
2Cases cited1 opinion
- O'Meara v. CommissionerUnited States Tax Court · 1947
3Cited by15 opinions
- Pierce v. CommissionerUnited States Tax Court · 1974
- Gilmartin v. CommissionerUnited States Tax Court · 1973
- Estate of Bennett v. CommissionerUnited States Tax Court · 1989
- Bishop v. CommissionerUnited States Tax Court · 1962
- Backer v. CommissionerUnited States Tax Court · 1952
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