Burrows v. Commissioner
United States Board of Tax Appeals
1. Where petitioner sold stock at a profit through a marginal brokerage account but failed to withdraw the profits, which were lost in the subsequent year when his account was closed out by the broker, held that the profits are nevertheless taxable in the year of the stock sales.
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1. Where petitioner sold stock at a profit through a marginal brokerage account but failed to withdraw the profits, which were lost in the subsequent year when his account was closed out by the broker, held that the profits are nevertheless taxable in the year of the stock sales. Margaret Wilson Baker,30 B.T.A. 188; affd., 81 Fed.(2d) 741. 2. Where petitioner was the owner of a debt secured by a second mortgage, the first mortgage having been foreclosed and the mortgagee adjudicated a bankrupt, held that the petitioner is entitled to its deduction as a bad debt; held, further, that the…
1Opinion of the Court
*237OPINION,
Offer:
This proceeding involves a deficiency of $1,846.21 in income tas for the year 1983. The petitioner stipulated at the hearing that no issue was being raised regarding the statute of limitations, which is proper in view of the waiver signed by him which is in evidence. Only three issues remain:
1. The petitioner claims that profits from stock sales made in a marginal account in the taxable year do not constitute income, since the profits were not withdrawn and in the following year the petitioner’s account was closed out by the brokers, with a debit balance due from him. This…
2Cases cited1 opinion
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
3Cited by15 opinions
- Flood v. United StatesCourt of Appeals for the First Circuit · 1943
- Dowd v. CommissionerUnited States Tax Court · 1977
- Tolzman v. CommissionerUnited States Tax Court · 1981
- Flood v. United StatesDistrict Court, D. Massachusetts · 1942
- Bellows v. CommissionerUnited States Tax Court · 1967
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