Hendricks v. Commissioner
United States Tax Court
During the taxable year 1963 the petitioners sold certain stock short. On December 27 and 30 of that year their broker, at their direction, purchased shares of the same stock for the purpose of closing their short position. It was not until Jan. 3 and 6, 1964 (the settlement dates), that the stock so purchased was received by the broker for purposes of delivery to close the short-sale transactions.
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During the taxable year 1963 the petitioners sold certain stock short. On December 27 and 30 of that year their broker, at their direction, purchased shares of the same stock for the purpose of closing their short position. It was not until Jan. 3 and 6, 1964 (the settlement dates), that the stock so purchased was received by the broker for purposes of delivery to close the short-sale transactions. Held, that the losses sustained by the petitioners on the short-sale transactions are not deductible for the taxable year 1963.
1Opinion of the Court
Atkins, Judge:
The respondent determined a deficiency in income tax for the taxable year 1963 in the amount of $246,089.75. Certain issues having been disposed of by agreement of the parties, the only issue remaining for decision is whether short-term capital losses in the amount of $967,760.60 resulting from short sales of securities in the stock market are properly deductible for the taxable year 1963.
FINDINGS OF FACT
Some of the facts were stipulated and are incorporated herein by this reference.
The petitioners are husband and wife whose residence at the time of filing the petition was in…
2Cases cited14 opinions
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