| Show II TAX fACTS No 20 14 H In computing net Income ers eve ere are arc allowed to deduct from gross income deductions tor for losses not only In the taxpayer's I ers er's business but losses bosses In n any ny transaction entered Into for tor profit or IC It arising from fires storms shipwreck or other cas- cas cas casualty unity Deductions for tor losses loses ore are od only to the extent that theY Te not compensated d tor for by insurance Insurance I ance anco or otherwise I Claims Claim tor for losses lossel should COn COn- con conform I form foist closely to the tho wording of or the tho statute Ue a a taxpayer maY I maYI feel certain ertain that t rop rt owned b by hint him Is worth less than tho the pun pur- pur purchase I ch chase SO price bib h Is la not alia allowed Od a deduction until the tho lo loss 1088 la is made maclo I madeI absolute by tho the sale ealo or other dis- dis disposition position of ot the property I I Frequent claims are made for I deductions for tor losses In the tho sale sola of oC resIdence property properly A los boss lona sus Cu sus 1 I tamed In the sale salo of at a 0 residence which at the time of ot purchase was as I bought hought without Intention ot of o selling Boiling 18 i not a deductible Item m because It was not a 0 transaction entered Into for profit I 1 or the tho same samo reason a IJ loss sustained In the palo of at an automobile purchased for personal use may not be deducted The Tho Intent to make mako a o profit mu must t have existed at lit the tho beginning ot of I the A manufacturer compelled to scrap machinery because It has hils gradually b omo obsolete may de- de deduct do duct do-duct duet duct the loss oas sustained It if ho has bas hassold hassold sold laid or otherwise abandoned basI the I Usually to be deduct deduct- deductible ible 0 as a a loss lose the assets upon which a the tho loss has been sustained must have completely red as a II resource t to the tho taxpayer er j |
