The Nash-Breyer Motor Co. v. Burnet case in 1930 revolved around the issue of tax deductions for losses incurred due to theft. The petitioner, Nash-Breyer Motor Co., claimed a deduction on their income tax return for the year 1921 based on an alleged loss from embezzlement by one of its employees during that year and prior years. However, this claim was denied by the Commissioner of Internal Revenue because it wasn't substantiated with sufficient evidence and also because it was not claimed within three years after filing as required by law at that time. The Supreme Court upheld the decision made by lower courts stating that there is no provision in any revenue act permitting such a deduction unless it occurred during the taxable year for which return is filed or if discovered within three years thereafter; thus making Nash-Breyer's claim invalid since they failed to comply with these requirements.

In the dissenting opinion for Nash-Breyer Motor Co. v. Burnet, it was argued that the majority's decision to deny tax deductions for losses incurred by a corporation due to worthless securities contradicted established legal principles and precedent. The dissenting justices believed that these losses should be considered as capital losses under Section 234(a)(4) of the Revenue Act of 1918, which allows corporations to deduct such losses from their gross income for taxation purposes. They pointed out that this provision had been consistently interpreted in previous cases to include all types of property used in trade or business, including stocks and bonds held as investments by a corporation. Therefore, they contended that there was no valid reason why securities rendered worthless during a taxable year should not also be treated as capital assets subject to deduction under this section.