Commissioner of Internal Revenue v. Goodwyn Crockery Company

WEICK, Circuit Judge.

The only question in this ease is whether the corporate taxpayer, Good-wyn Crockery Company, was entitled to a deduction, in its income tax computations, for net operating loss carryovers from the earnings of the business it conducted after the sale of its outstanding shares of capital stock to a new owner. This depended on whether Goodwyn, within the meaning of Section 382(a) (1) (C) of the Internal Revenue Code of 1954, “continued to carry on a trade or business substantially the same as that conducted before * * * ” the change of ownership of its shares. 26 U.S.C. 1958…