Commissioner of Internal Revenue v. D. J. Condit

BREITENSTEIN, Circuit Judge.

The Commissioner seeks review of a Tax Court decision 1 allowing taxpayer Condit a deduction in the amount of $6,100 as a loss “incurred in any transaction entered into for profit, though not connected with a trade or business.” 2

The facts are undisputed. Taxpayer and one Conard agreed in 1954 to open a store in Tulsa and to share equally the profits and losses. Taxpayer was a manufacturer’s representative and Con-ard was in the general construction business. Two corporations were formed. One, The Dorman Company (Dorman), owned the land and building where the…