Edwin C. Hollenbeck and Kathryn J. Hollenbeck, Wade G. Ellis and Anita l.ellis v. Commissioner of Internal Revenue

TRASK, Circuit Judge:

Edwin C. Hollenbeck and his wife, Kathryn, and Wade G. Ellis and his wife, Anita, appeal from a decision of the Tax Court, entered August 19, 1968, which upheld the Commissioner’s assessment of deficiencies in the Hollenbecks’ and Ellis’ joint individual income tax returns in the amounts of $8,991.73 and $7,689.47 respectively. Jurisdiction of this court is under 26 U.S.C. § 7482.

Appellants contend that they are entitled to ordinary loss treatment on the capital stock they received in cancellation of the indebtedness of Imperial Concrete Products Corporation to them under…