Purdy v. Commissioner
United States Board of Tax Appeals
Where a taxpayer was regularly engaged in the business of buying and selling securities on his own account primarily for the profit to be derived from sales at prices in excess of cost, his securities, even though held for more than two years, were not capital assets, since they were held primarily for sale in the course of his business.
1Opinion of the Court
*573OPINION.
Murdock :
Section 23 (r) (1) of the Revenue Act of 19321 limits the deduction for losses on stocks and bonds which are not “capital assets” to the amount of the gains from the sale or exchange of other stocks and bonds which are not “capital assets.” Section 101 imposes a tax upon capital net gains. The petitioner sustained losses from *574the sale of stocks and bonds which were not “capital assets.” The losses amounted to $7,109.67. He realized a gain of $14,233.68 from the sale of 1,100 shares of General Electric Co. stock. If the latter shares were not “capital assets”, the loss would…
2Cited by4 opinions
- Commissioner v. PurdyCourt of Appeals for the First Circuit · 1939
- Burnett v. CommissionerUnited States Board of Tax Appeals · 1939
- Purdy v. CommissionerUnited States Board of Tax Appeals · 1937
- Schiffer v. CommissionerUnited States Board of Tax Appeals · 1939