William C. Horrmann v. Commissioner

William Horrmann (plaintiff) inherited a home on Howard Avenue, spent $9,000 redecorating it, moved in, and sold his prior residence. After living there two years, he moved out in 1942 intending to stop using it as a home, and he tried continuously to rent or sell it, finally selling it in 1945. He claimed three deductions for the 1942-1945 period: depreciation, maintenance and conservation expenses, and the capital loss on the sale. The Commissioner disallowed all three.

Whether merely abandoning a personal residence and listing it for rent or sale converts the property into a transaction entered into for profit so that a capital loss on its sale is deductible.