Leslie v. Commissioner
United States Tax Court
1. Deduction -- Loss -- Transfer Entered into for Profit -- Residence. -- A residence of the petitioner was damaged by a hurricane in 1938 and was never thereafter occupied. A real estate agent was allowed to try to find a purchaser after the hurricane, but never succeeded.
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1. Deduction -- Loss -- Transfer Entered into for Profit -- Residence. -- A residence of the petitioner was damaged by a hurricane in 1938 and was never thereafter occupied. A real estate agent was allowed to try to find a purchaser after the hurricane, but never succeeded. The property was transferred to the mortgagee in 1940. Held, the loss, if any, was not from a transaction entered into for profit within section 23 (e) (2). 2. Deduction -- Nonbusiness Expenses. -- Expenses of a caretaker for the property after the hurricane were not deductible under section 23 (a) (2) as ordinary and…
1Opinion of the Court
OPINION.
Murdock, Judge:
The petitioners, on their return for 1940, claimed a deduction of $33,003.09 as a loss from storm. They had been allowed a deduction for the hurricane loss in 1938. They now have discarded that theory of the 1940 deduction and claim a deduction of $26,181.77 under section 23 (e) (2) of the Internal Revenue Code as a loss from a transaction entered into for profit not connected with their business. They claim that the property was converted to an income-producing purpose immediately after the hurricane when it was placed in the hands of an agent for sale; its fair market…
2Cases cited2 opinions
- Robinson v. CommissionerUnited States Tax Court · 1943
- Saltonstall v. CommissionerUnited States Tax Court · 1943
3Cited by74 opinions
- Newcombe v. CommissionerUnited States Tax Court · 1970
- Sherman v. CommissionerUnited States Tax Court · 1952
- Grammer v. CommissionerUnited States Tax Court · 1949
- Neave v. CommissionerUnited States Tax Court · 1952
- Ellisberg v. CommissionerUnited States Tax Court · 1947
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