A. Arena & Co. v. United States
Opinion
lead Opinion
Yankwich, J.
The above-entitled cause, heretofore tried, argued and submitted, is now decided as follows:
Judgment will be for the defendant that the plaintiff take nothing by the Complaint.
Findings and judgment to be prepared by counsel for the defendant under Local Rule 7.
Costs to defendant.
*506 Comment
The action seeks to recover $31,250 alleged to have been paid for the years 1943 and 1944 as excess profit taxes. Timely claims for refund have been made and rej ected.
The sole question before the court is whether the plaintiff suffered a loss of $31,250 or any loss by virtue of the transfer and sale by plaintiff tO' the Arena Realty Company on December 20, 1943, of certain business property located in the City of Pasadena, Los Angeles County. Internal Revenue Code, Secs. 111, 113(a), 26 U.S.C.A. §§ 111 , 113(a).
The property had been purchased by the plaintiff from the Arena Realty Company in 1934, at a valuation of $50,000. The two corporations are family corporations with common directorate, controlled by the members of the same family. (See Finding II, as to manner in which stock was owned.) It was admitted at the trial by John S. Arena, the President of the plaintiff and the…