Bradford v. Commissioner
United States Tax Court
1. A dealer in securities realized a gain upon the sale of certain stocks to its customers in the ordinary course of its dealer business. Held, the gain constituted ordinary income rather than a capital gain. 2. Petitioner was released from his liability as endorser of a note upon part payment of the amount due. The creditor retained the note upon which there was an unpaid balance.
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1. A dealer in securities realized a gain upon the sale of certain stocks to its customers in the ordinary course of its dealer business. Held, the gain constituted ordinary income rather than a capital gain. 2. Petitioner was released from his liability as endorser of a note upon part payment of the amount due. The creditor retained the note upon which there was an unpaid balance. Held, petitioner did not become subrogated to the rights of the creditor under Tennessee law, and the payment was not deductible as a worthless bad debt. The payment was deductible, however, as loss within the…
1Opinion of the Court
OPINION.
BRUCE, Judge:
Issue I.
The first question for determination is whether petitioner realized a capital gain or ordinary income upon his distributive share of the profit realized by J. C. Bradford and Co. in 1943 on certain securities. J. C. Bradford and Co. was a dealer in securities. Throughout 1943 it bought and sold securities identical with those in controversy. All of its sales were made to customers of the firm in the ordinary course of business. On April 17, 1943, the securities in controversy, which had been purchased for resale to customers in the ordinary course of business,…
2Cases cited28 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Helvering v. CliffordSupreme Court of the United States · 1940
- Higgins v. SmithSupreme Court of the United States · 1940
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
- Burnet v. LoganSupreme Court of the United States · 1931
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3Cited by33 opinions
- Santa Anita Consol., Inc. v. CommissionerUnited States Tax Court · 1968
- Doering v. CommissionerUnited States Tax Court · 1963
- Eleanor A. Bradford v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1956
- Capitol Coal Corp. v. CommissionerUnited States Tax Court · 1956
- Bradford v. CommissionerUnited States Tax Court · 1960
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