Show m I I Income Tax l YOUR YOUn I INCOME COME X TS XAo T o 0 16 19 The I ev nuo act ot of 1 1024 1924 D 24 pro pro- provides provides Tides pro vides that th hit losses not compensated for by Insurance or otherwise are ded deductible It if Incurred In trade trado or business in any transaction en- en entered entered en entered into for profit though not connected with th the e taxpayers taxpayer s a trade trado or business or it arising from tires fires storms shipwreck or other I casualty or from theft I Losses connected with the tha purchase pur- pur purI purchase pur purchase chase and sale sala of merchandise are Lre I ascertained by means meins ot or which are aro required when when- whenever ever or In the tho opinion of o the tho commis commis- commissioner commissioner stoner of internal their I use Is ts necessary in order clearly cearly I Ito to determine the Income ot ane an taxpayer I J A manufacturer ma may be com corn compelled compelled pelted to scrap machinery because It has become Inadequate He may deduct the tho loss sustained If It he has hassold hassold sold Bold or other otherwise Iso permanently abandoned the old machinery If It a taxpayer demolishes a It build build- buildIng buildIng building a ing used In tn his trade or business and replaces It he may deduct the loss sustained But It If he acquires a as the site site- ot of a new v building land upon which la is located an nn old bUIld bUIld- bUIldIng building build building ing demolition of ot the old building building- II 1 Is not considered a loss therefore not deductible Losses connected with lh transactions transactions transactions entered into for profit not connected with lIh the tho taxpayers taxpayer's trade or business must conform closely to the tho wording of the statute to be allowed For example a lawyer may purchase an apartment with Ithe object ot of o deriving income from fromI the rental A physician buys buia bu s shares I of stock clock on which he hopes to tomako tomake tomake make mako a profit Both Doth sustain losses upon a subsequent sale which ar are deductible But If It either should sell hl his residence res I nce which at the tho time of o purchase was bought with with- without without without out the Intention of at resale the loss loso Ios I I It any is not deductible because It was not a transaction entered entered Into for tor profit Similarly a a loss connected with th the tho sale Bale of an nn automobile au- au bought for tor pleasure or convenience of o the taxpayer CAn CAn- CAnnot cannot can cannot not be deducted |