Morco Corporation, Successor to Oceanic Investing Corporation v. Commissioner of Internal Revenue

The petitioner appeals from a ruling by the Tax Court, that Oceanic Investing Corporation, taxpayer’s predecessor, as a result of a contract for the sale of its property subject to a 99 year lease, did not sustain a deductible loss under Section 23(f) of the Internal Revenue Code of 1939 for its taxable fiscal year ending April 30, 1953 or April 30, 1954. As a result of such ruling it is required to pay a deficiency in income tax for the fiscal year ended April 30, 1952 and it is deprived of a net operating loss carry-back to 1952 under Section 122(b) of the 1939 Code, which would entitle it…