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HELVERING V. OWENS, 305 U. S. 468 (1939)

U.S. Supreme Court

Helvering v. Owens, 305 U.S. 468 (1939)

Helvering v. Owens

No. 180

Argued December 9, 1938

Decided January 3, 1939*

305 U.S. 468


1. Under the Revenue Acts of 1932 and 1934, the basis for determining the amount of a loss sustained during the taxable year, arising from damage by casualty to property not used in the taxpayer's trade or business (as to which class of property no annual deductions for depreciation are allowed), is not the cost of the property, but its value immediately before the casualty. P. 305 U. S. 471.

2. In computing under the Revenue Act of 1934 the amount of the deduction for losses sustained during the taxable year from the sale or other disposition of property, § 113(b)(1)(B) -- and the corresponding provision of the 1932 Act -- must be read as a limitation upon the amount of the deduction so that it may not exceed cost, and, in the case of depreciable nonbusiness property, may not exceed the amount of the loss actually sustained in the taxable year, measured by the then depreciated value of the property. P. 305 U. S. 471.

95 F.2d 318 reversed.

97 F.2d 431 affirmed.

Certiorari, post, pp. 582, 585, to review, in No. 180, the affirmance, and in No. 318, the reversal, of decisions of the Board of Tax Appeals in favor of the taxpayers.

Page 305 U. S. 469

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