BLAK Invs. v. Comm'r
United States Tax Court
In 2001 two partners of partnership P borrowed Treasury securities and sold them in the open market; i.e., a short sale. They contributed the short sale proceeds and the obligation to cover the short sale to P in exchange for interests in P. The two partners claimed their bases in P were increased by the short sale proceeds but not reduced by the obligation to cover the short sale.
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In 2001 two partners of partnership P borrowed Treasury securities and sold them in the open market; i.e., a short sale. They contributed the short sale proceeds and the obligation to cover the short sale to P in exchange for interests in P. The two partners claimed their bases in P were increased by the short sale proceeds but not reduced by the obligation to cover the short sale. P then redeemed the two partners' interests in P. On their Federal income tax returns the two partners claimed significant losses with respect to the redemption and subsequent sale of assets received in the…
1Opinion of the Court
BLAK INVESTMENTS, KYLE W. MANROE TRUST, ROBERT AND LORI MANROE, TRUSTEES, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
BLAK Invs. v. Comm'r
No. 1283-07
United States Tax Court
133 T.C. 431; 2009 U.S. Tax Ct. LEXIS 39; 133 T.C. No. 19;
December 23, 2009, Filed
In 2001 two partners of partnership P borrowed Treasury securities and sold them in the open market; i.e., a short sale. They contributed the short sale proceeds and the obligation to cover the short sale to P in exchange for interests in P. The two partners claimed their bases in P were increased by the…
Also in this document: Concurrence; Dissent.
2Cases cited32 opinions
- Steel Co. v. Citizens for a Better EnvironmentSupreme Court of the United States · 1998
- United States v. MenascheSupreme Court of the United States · 1955
- Harisiades v. ShaughnessySupreme Court of the United States · 1951
- Crane v. CommissionerSupreme Court of the United States · 1947
- E. I. Dupont De Nemours & Co. v. DavisSupreme Court of the United States · 1924
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