Henry v. United States

LITTLETON, Judge (Retired).

Plaintiff sues for a refund of income tax for the year 1948. The tax was paid pursuant to a determination by the Commissioner of Internal Revenue that a loss of $27,873.50, claimed by plaintiff as an ordinary loss, fully deductible as such under section 23(e) (2) of the Internal Revenue Code of 1939, 26 U.S.C. (1952 ed.), § 23(e) (2), was a short-term capital loss arising from a non-business bad debt, under section 23 (k) (4) of the 1939 Code, 26 U.S.C. (1952 ed.), § 28(k) (4), and therefore subject to the $1,000 limitation on deductions for capital losses (§ 117(d)…