Commonwealth ex rel. Allphin v. Borders

CULLEN, Commissioner.

The question is whether, under the provisions of the state income tax law in force during the years 1946, 1947 and 1948, a taxpayer could carry over to the following year a net loss sustained during a particular tax year.

The appellee, Daskell Borders, sustained a net loss in the operation of a farm during the year 1946. In his state income tax return for the year 1947, he carried over the loss and deducted it from his 1947 income. The Department of Revenue disallowed the deduction, and assessed an additional tax and penalties against Borders. In a suit by the department…