Northern Pacific Railway Company, Transferee of Northwestern Improvement Company v. The United States

OPINION

DAVIS, Judge *

Northern Pacific Railway Company brought this suit to recover federal income taxes of $74,608.32 and deficiency interest of $19,631.18, which it paid as transferee of Northwestern Improvement Company (“Northwestern” or “NWI”), for the final taxable year of NWI commencing January 1, 1957, plus statutory interest.

At issue in the case is whether plaintiff, as transferee and successor to its wholly owned subsidiary, NWI, is entitled under the Internal Revenue Code of 1954 to a deduction for a capital loss incurred by the transfer on December 3, 1957 of 15,000 shares of…