Burnet v. Clark - 287 U.S. 410 (1932)


U.S. Supreme Court

Burnet v. Clark, 287 U.S. 410 (1932)

Burnet v. Clark

No. 180

Argued November 14, 1932

Decided December 12, 1932

287 U.S. 410

Syllabus

The taxpayer was interested in a corporation engaged in river and harbor improvement work, as majority stockholder and president, and devoted himself largely to its affairs. He was also interested in other concerns engaged in similar work, and had investments in other corporate shares. He treated the corporation as a separate entity for taxation, and made separate personal income tax returns. Through endorsement of obligations of the corporation, and sale of its stock, he suffered net losses in 1921 and 1922, for which he claimed deductions in his return for 1923. He was not in the business of endorsing or buying and selling securities.

Held:

The losses did not result "from the operation of any trade or business regularly carried on by the taxpayer," and, under the Revenue Act of 1921, § 204, were not deductible from gains of succeeding years. P. 287 U. S. 414.

61 App.D.C. 217, 59 F.2d 1031, reversed.

Page 287 U. S. 411

Certiorari to review a judgment reversing a decision of the Board of Tax Appeals, 19 B.T.A. 859, which sustained an order of the Commissioner determining a deficiency in income tax. Cf. the cases next preceding and following.



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