Davis v. Commissioner
United States Tax Court
Selling commissions paid in connection with the disposition of securities by one not engaged in carrying on a trade or business, are not ordinary and necessary expenses within the meaning of section 23 (a) (2) of the Internal Revenue Code. They are selling costs treated as an offset against the selling price in determining gain or loss incident to the transaction.
1Opinion of the Court
opinion.
Arundeia., Judge:
It has now been definitely established by the Supreme Court in Spreckles v. Helvering, 315 U. S. 626, that selling commissions paid in connection with the disposition of securities may not be deducted as ordinary and necessary expenses by one not a dealer in securities, and these commissions are to be treated as offsets against the sale price in determining the gain Or loss incident to the disposition of the property. As petitioner was not a dealer in securities, it is evident that the commissions he here seeks to deduct would not be allowable for tax purposes under…
2Cases cited4 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Spreckels v. CommissionerSupreme Court of the United States · 1942
- Higgins v. CommissionerUnited States Tax Court · 1943
3Cited by3 opinions
- Carbine v. CommissionerUnited States Tax Court · 1984
- Carbine v. CommissionerUnited States Tax Court · 1984
- Davis v. CommissionerUnited States Tax Court · 1944