Mitchell v. Commissioner
United States Tax Court
Respondent has determined that on a stock sale-purchase transaction, within the meaning of sec. 16(b) of the Securities Exchange Act of 1934, payment by petitioner to his employer of the difference between the sale price of the stock sold and the purchase price of the stock purchased, constitutes merely a capital loss under the principles enunciated in Arrowsmith v. Commissioner, 344 U.S. 6 (1952). Petitioner contends the payment constituted an ordinary and necessary…
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Respondent has determined that on a stock sale-purchase transaction, within the meaning of sec. 16(b) of the Securities Exchange Act of 1934, payment by petitioner to his employer of the difference between the sale price of the stock sold and the purchase price of the stock purchased, constitutes merely a capital loss under the principles enunciated in Arrowsmith v. Commissioner, 344 U.S. 6 (1952). Petitioner contends the payment constituted an ordinary and necessary business expense under sec. 162(a), I.R.C. 1954. Held, Arrowsmith principles not applicable. Held, further, petitioner's…
1Opinion of the Court
OPINION'
Petitioner seeks to deduct the amount of the payment made to his employer as an ordinary and necessary business expense under section 162(a) of the Internal Revenue Code of 1954.3 The respondent, by his adjustment, has allowed a deduction only for a long-term capital loss on the theory of Arrowsmith, v. Commissioner, 344 U.S. 6 (1952).
Petitioner’s argument in favor of an ordinary and necessary business expense deduction is premised upon Ms contentions that: (1) He is in the business of rendering services to his employer, (2) that Ms payment of $17,939.29 to General Motors was not made…
2Cases cited9 opinions
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Marks v. CommissionerUnited States Tax Court · 1956
- Pike v. CommissionerUnited States Tax Court · 1965
- Lowe v. CommissionerUnited States Tax Court · 1965
- Butler v. CommissionerUnited States Tax Court · 1951
4 more not listed; retrieve them via the Exa API.
3Cited by28 opinions
- William L. Mitchell and Marian S. Mitchell v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1970
- James E. Anderson and Alice Anderson v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1973
- Anderson v. CommissionerUnited States Tax Court · 1971
- Arthur H. Du Grenier, Inc. v. CommissionerUnited States Tax Court · 1972
- Nathan and Joanne T. Cummings v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1975
23 more not listed; retrieve them via the Exa API.