The First National Bank & Trust Company of Chickasha v. United States

BARRETT, Circuit Judge.

The Government is appealing from the District Court’s judgment for the First National Bank & Trust Company of Chickasha (taxpayer), 329 F.Supp. 1147, wherein the taxpayer sought a refund of taxes alleged to have been erroneously paid in 1966 under Section 165 of the Internal Revenue Code relating to losses from the demolition of buildings. The District Court allowed a demolition loss to the taxpayer.

The taxpayer entered into a “Contract for Sale of Real Estate” on May 17, 1965 to purchase the Salter building from Mr. and Mrs. Salter for $56,400. At that time the bank’s…