Covington v. Commissioner
United States Board of Tax Appeals
1. Losses sustained in trading in commodity futures contracts are held to be capital losses subject to the limitation of section 117(d) of the Revenue Act of 1936. 2. Commissions paid on completed transactions are held deductible to the extent attributable to sales.
1Opinion of the Court
*603OPINION.
AeuNdell :
The respondent has limited to $2,000 for each year the amount of deductible loss sustained by the petitioner in trading in futures contracts. The petitioner claims the losses are deductible in full. He originally included brokers’ commissions and excise taxes in the amounts claimed as losses. By amendment to the petition the commissions and taxes are segregated and claimed, respectively, as expense and tax deductions.
*604The respondent’s limitation of the losses to $2,000 is based on his holding that the futures contracts bought and sold by the petitioner were in the nature of…
2Cases cited3 opinions
- Helvering v. WinmillSupreme Court of the United States · 1938
- Board of Trade of Chicago v. Christie Grain & Stock Co.Supreme Court of the United States · 1905
- Bibb v. AllenSupreme Court of the United States · 1893
3Cited by32 opinions
- Smith v. CommissionerUnited States Tax Court · 1982
- King v. CommissionerUnited States Tax Court · 1987
- Hoover Co. v. CommissionerUnited States Tax Court · 1979
- Corn Products Refining Company v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1954
- Vickers v. CommissionerUnited States Tax Court · 1983
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