The opinion
Appeal of KEYSTONE TABLE COMPANY.
Keystone Table Co. v. Commissioner
Docket No. 533.
United States Board of Tax Appeals
1 B.T.A. 382 ; 1925 BTA LEXIS 2945 ;
January 27, 1925 , decided Submitted January 12, 1925 .
*2945 A taxpayer who has sustained a net loss in the calendar year 1920 may not deduct that loss from the net income of 1921, because the Revenue Acts of 1918 and 1921 do not contemplate such a right.
Mr. W. O. Knaub, General Manager of the company, for the taxpayer.
J. A. Adams, Esq. (Nelson T. Hartson, Solicitor of Internal Revenue) for the Commissioner.
GRAUPNER
*382 Before GRAUPNER, LANSDON, LITTLETON, and SMITH.
This appeal involves a deficiency in income taxes for the year 1921 in the amount of $387.93. From the evidence presented at the hearing the Board makes the following
FINDINGS OF FACT.
1. The taxpayer is a Pennsylvania corporation engaged in the manufacture of furniture at Mount Wolf, Pa. In 1916 the corporation purchased a factory at Johnson City, Tenn. This factory was a losing venture and was sold in 1920 at a loss of $43,249.60. This loss was entered on the company's tax return for the calendar year 1920 as a deduction. The net loss exceeded the net income of the taxpayer for that year by the amount of $33,489.95.
2. The taxpayer in making its return for the year 1921 sought to deduct the amount of $33,489.95 from *2946 its net income for that year. *383 The Commissioner disallowed the deduction, which resulted in the deficiency appealed from.
DECISION.
The determination of the Commissioner is approved.
OPINION.
GRAUPNER: The Revenue Act of 1918 contains no provisions which would permit the taxpayer to deduct the loss sustained by it in 1920 from the net income of the year 1921. Section 204(b) of the 1921 act expressly limits the operation of its provisions to losses sustained after December 31, 1920. Section 204(b) of the 1918 act provides no relief for the taxpayer and it is without the privilege granted in the later act; therefore, the determination of the Commissioner must be sustained.