Opinion ID: 441995
Heading Depth: 1
Heading Rank: 6

Heading: the corn products test.

Text: 73 This is not the first time we have been called upon to define the limits of the Corn Products doctrine. In Schlumberger, 443 F.2d at 1115, we rejected two tests of the Corn Products exception urged upon us by the Government: the temporary business expedient 36 test and the protection-expansion 37 test. Instead, we followed the reasoning of the Court of Claims: 74 [I]f securities are purchased by a taxpayer as an integral and necessary act in the conduct of his business, and continue to be so held until the time of their sale, any loss incurred as a result thereof may be fully deducted from gross income as a business expense or ordinary loss. If, on the other hand, an investment purpose be found to have motivated the purchase or holding of the securities, any loss realized upon their ultimate disposition must be treated in accord with the capital asset provisions of the Code. 75