United States v. Vaughan (In re Vaughan)

MEMORANDUM OPINION AND ORDER

SCOTT REED, District Judge.

The above-styled action is before the Court as an appeal filed by the United States of America, seeking review of the United States Bankruptcy Court’s Judgment and Order. Honorable Joe Lee, Bankruptcy Judge for the Eastern District of Kentucky, held that certain payments made by George Franklin Vaughan, Jr. (Vaughan), debtor, under the Plan of Arrangement to various landlords of restaurant sites were to be treated, for tax purposes,1 as losses incurred in a transaction entered into for profit, though not connected with a *696trade or…