Homer L. Bruce Et Ux. v. United States

In this taxpayers’ suit for refund, the issue is whether certain stock losses should be treated as ordinary losses (rather than capital) because of the provisions of Section 1244 of the Internal Revenue Code of 1954. The District Court determined the losses to be capital and denied the taxpayers’ claim for refund. Bruce v. United States, 279 F. Supp. 686 (S.D.Tex.1968).

The facts are adequately stated in the District Court’s opinion. As to the first three stock issues, the controlling question, as we see it, is whether the definitional requirements of Section 1244 have been met regarding the…