Ralph A. Skilken and Loretta Skilken v. Commissioner of Internal Revenue

WEICK, Circuit Judge.

In this appeal we are called upon to decide whether a partnership is entitled to deduct as business losses amounts allocated to locations terminable at will, which locations were required in its purchase of vending machine businesses and were terminated during the taxable years.

Taxpayer, Ralph A. Skilken 1 , owned a one-third interest in a partnership known as Acme-Miami Vending Service [Acme-Miami], which sold cigarettes, candy and other items through the use of vending machines. Taxpayer’s wife, Loretta Skilken, is a party to these proceedings because she signed a joint…