Robb v. Commissioner

5 B.T.A. 827, 1926 BTA LEXIS 2766

• Court: United States Board of Tax Appeals
• Decided: December 16, 1926
• Docket: Docket No. 7740.
• Status: Published

Opinion

OPINION.

Littleton:

Section 204 of the Revenue Act of 1921 provides that:

The term “net loss” means only net losses resulting from the operation of any trade or business regularly carried on by the taxpayer (including losses sustained from the sale or other disposition of real estate, machinery, and other capital assets, used in the conduct of such trade or business).

In the opinion of the Board the facts stipulated do not bring the petitioner within the provisions of this section. They fail to show that he was regularly engaged in carrying on a trade or business of his own. He rendered personal and financial assistance to the corporation in which he had made an investment, but the business was that of the corporation. All that he did was to make an investment in and an occasional loan to a corporation which was regularly engaged in carrying on a millinery business. In the opinion of the Board, the evidence does not warrant the conclusion that petitioner’s loss in 1921 was from the operation of a trade or business regularly carried on by him within the meaning of section 204, and the Commissioner correctly denied the deduction of $4,797.57 from 1922 income.

Judgment will he entered for the Commissioner.