No. 62.

311 U.S. 513 (1941)


Supreme Court of United States.

Decided January 6, 1941.

Attorney(s) appearing for the Case

Mr. George P. Halperin, with whom Mr. Bernard S. Barron was on the brief, for petitioner.

Mr. Norman D. Keller, with whom Solicitor General Biddle, Assistant Attorney General Clark, and Mr. Sewall Key were on the brief, for respondent.

MR. JUSTICE STONE delivered the opinion of the Court.

This is a companion case to Helvering v. Hammel, ante, p. 504.

The question is whether the loss suffered by petitioner on foreclosure sale of his mortgaged property, acquired for profit, may be deducted in full from gross income or only to the extent provided by § 117 (d) of the 1934 Revenue Act. The statutory provisions involved are those of the 1934 Act relating to capital gains or losses, particularly "losses from sales or exchanges of capital assets" considered in the Hammel case which are made applicable to petitioner, a corporation, by § 23 (f) (j).

The Board of Tax Appeals ruled that petitioner's loss was deductible in full from its ordinary income. The court of appeals for the second circuit reversed the Board, 110 F.2d 614, holding that the loss sustained by petitioner was a loss from a sale of capital assets, § 23 (j), which under § 117 (d) could be deducted from the gross income only to the extent of capital gains, plus $2,000. We granted certiorari, 310 U.S. 622, so that the case might be considered with the conflicting decision of the court of appeals for the sixth circuit in the Hammel case, 108 F.2d 753. For the reasons stated in our opinion in the Hammel case we think that this case was rightly decided below.




1000 Characters Remaining

Leagle.com reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

User Comments

Listed below are the cases that are cited in this Featured Case. Click the citation to see the full text of the cited case. Citations are also linked in the body of the Featured Case.

Cited Cases

  • No Cases Found

Listed below are those cases in which this Featured Case is cited. Click on the case name to see the full text of the citing case.

Citing Cases