| Show PROPER deductions IN FIGURING INCOME TAX numerous errors in claims for deduc eions birve leer in erff ere return returns to be allowed deduction deductions for losses must bo be confined cen fined to the following blasses loses sustained in trade or bui business iness bosies sustained in eions entered into for profit though not connected with a trade or busl busin esop losses suitan led of property not con necked with trado or business if aria ing from firce fires shipwreck storm storms or i other casualty or from theft co the extent any of the above lessee losses are com pen sated for by Inaura insurance ure they aro are not deductible to bo be allowe I 1 an a deduction in the return for 1920 a loss 1 must have been actually oust tined during that year A taxpayer may feri fel certain that real to tate owned by him bim is i worth lee less than what he paid for it A merchant may be convinced that certain stock can not L be old nold unless marked below coit cost in ia neither event however L he entitled to claim for deduction until the loss is made absolute by sale or other dispo of the property claims for losses must conform close ly to the wording of the statute ta tute A lor loss sustained in the eale sale of an auto mobile purchased for personal use ii Is not because it is not a 2 transaction entered into for profit 11 A loss sustained by a taxpayer in the ale sale of his home Is not deductible for the reason that ordinarily when a man buys a re ce and moves into it he has no intention of selling and has not it t I 1 di entered into a transaction for prof it marriage not only is a great leveler level cr as youve often heard but when it comes to pocketbooks its also a gr great at flattener |
