(DOWNLOAD) "De Coppet v. Helvering" by United States Court of Appeals for the Second Circuit # Book PDF Kindle ePub Free
eBook details
- Title: De Coppet v. Helvering
- Author : United States Court of Appeals for the Second Circuit
- Release Date : January 15, 1940
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 55 KB
Description
The question on which this appeal turns is whether one of the taxpayers, the husband, should have been allowed to deduct as a loss in 1933, the cost of his interest in certain shares of stock in the Continental Corporation, a New York corporation organized in 1929, which was wound up without assets in 1933. He claimed the deduction under § 23(e) (2) of the Revenue Act of 1932, 26 U.S.C.A. § 23 (e) (2), as a one, "incurred in" a "transaction entered into for profit, though hot connected with * * trade or business". The Commissioner disallowed the deduction on the ground that the taxpayers interest in the shares was not an independent investment, but merely a part of his holdings in the shares of the Continental Bank, another corporation, and that the collapse in value of the Continental Corporations shares was no more a "realized" loss, than if they had been those of a corporate subsidiary, owned by the Bank. A majority of the Board took the same view, and the taxpayer appealed. The question therefore is whether the taxpayers interest in the Continental Corporations shares was separate enough from his holding of shares in the Continental Bank to make their total extinction a "realizable" loss.