Reporter Publishing Co. v. Commissioner
United States Tax Court
Petitioner purchased all the assets of a newspaper in 1940, including an Associated Press membership. The by-laws existing then imposed barriers to membership for applicants competing with old members, including what in effect amounted to a veto power by the competing member. In 1945, the Supreme Court held these by-laws to be illegal restraints of trade. Petitioner contends thereby it sustained a deductible loss under section 23 (f) of the Internal Revenue Code.
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Petitioner purchased all the assets of a newspaper in 1940, including an Associated Press membership. The by-laws existing then imposed barriers to membership for applicants competing with old members, including what in effect amounted to a veto power by the competing member. In 1945, the Supreme Court held these by-laws to be illegal restraints of trade. Petitioner contends thereby it sustained a deductible loss under section 23 (f) of the Internal Revenue Code. The Associated Press after the Supreme Court decision amended its by-laws so as to remove the monopolistic features but leaving all…
1Opinion of the Court
OPINION.
Black, Judge:
The question presented here is whether petitioner sustained a deductible loss by reason of the Supreme Court decision in Associated Press v. United States, sufra. Petitioner contends that when the Supreme Court took away the exclusive right to A. P. services in its community, its A. P. membership thereby became totally worthless; thus a completed transaction occurred which constitutes a loss under section 23 (f), I. R. C. Respondent contends although the A. P. franchise value might have been impaired, it did not become totally worthless and there is no provision in the…
2Cases cited3 opinions
- Pugh v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1931
- Gulf Power Co. v. CommissionerUnited States Tax Court · 1948
- Consolidated Freight Lines v. Commissioner of Int. Rev.Court of Appeals for the Ninth Circuit · 1939
3Cited by6 opinions
- New York Sun, Inc. v. CommissionerUnited States Tax Court · 1956
- New York Sun, Inc. v. CommissionerUnited States Tax Court · 1956
- New York Sun, Inc. v. CommissionerUnited States Tax Court · 1956
- Reporter Publishing Co. v. CommissionerUnited States Tax Court · 1952
- Star-Journal Publishing Corp. v. United StatesUnited States Court of Claims · 1957
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