Boehm v. Commissioner - 326 U.S. 287 (1945)


U.S. Supreme Court

Boehm v. Commissioner, 326 U.S. 287 (1945)

Boehm v. Commissioner of Internal Revenue

No. 69

Argued October 19, 1945

Decided November 13, 1945

326 U.S. 287

Syllabus

1. Treasury Regulations long continued without substantial change, applying to unamended or substantially reenacted statutes, are deemed to have received congressional approval, and have the effect of law. P. 326 U. S. 291.

2. To be deductible in computing income tax under § 23(e) of the Revenue Act of 1936, a loss must have been sustained in fact during the taxable year. P. 326 U. S. 292.

3. The determination of whether, under § 23(e), a loss was sustained in a particular tax year requires consideration of all pertinent facts and circumstances, regardless of their objective or subjective nature. P. 326 U. S. 292.

The taxpayer's attitude and conduct, though not to be ignored, are not decisive. P. 326 U. S. 293.

4. Whether, within the meaning of § 23(e), particular corporate stock became worthless during a given taxable year is purely a question of fact to be determined in the first instance by the Tax Court, and the circumstance that the facts may be stipulated or undisputed does not make this issue any the less factual in nature. P. 326 U. S. 293.

5. A decision of the Tax Court which is "in accordance with law" may not be set aside on review, even though different inferences and conclusions might fairly have been drawn from the undisputed facts. P. 326 U. S. 293.

6. The taxpayer has the burden of establishing that a claimed deductible loss was sustained in the taxable year. P. 326 U. S. 294.

7. Upon the stipulated facts of this case, the Tax Court's conclusion that the corporate stock in question did not become worthless in 1937, and that the taxpayer therefore sustained no deductible loss in that year, is sustained. P. 326 U. S. 294.

8. Remedying harshness in the operation of a Revenue Act is for Congress, not the courts. P. 326 U. S. 295.

146 F.2d 553, affirmed.

Certiorari, 325 U.S. 847, to review a judgment affirming in part a decision of the Tax Court which sustained

Page 326 U. S. 288

the Commissioner's determination of a deficiency in income tax.



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