Mirro-Dynamics Corporation v. United States

Taxpayer, a California corporation, appeals the judgment of the United States District Court for the Southern District of California granting the government’s motion for summary judgment. Mirro-Dynamics Corp. v. United States, 247 F.Supp. 214 (1965).

Taxpayer claims an overpayment of federal income taxes for the fiscal years ending October 31, 1958, 1959, and 1960. Timely claims for refund were filed. Jurisdiction was conferred on the district court by 28 U.S.C. §§ 1340 and 1346(a) (1). Jurisdiction is conferred on this court by 28 U.S.C. § 1291 .

From 1947 to April 1961, taxpayer, using the names Pacific Bolt Corporation and Fullview Corporation, manufactured and sold sliding glass doors. In April 1961, taxpayer sold its assets for about $1 million, terminated its previous operations entirely, changed its name to Mirro-Dynamics Corporation, and began the purchase and sale of securities. Apparently taxpayer was successful initially, but during 1962 it suffered losses on the transactions.

Before the district court, taxpayer asserted that these losses were ordinary losses — resulting from the sale at a loss of non-capital assets — which could properly be carried back to the…