Lowell v. Commissioner
United States Board of Tax Appeals
1. A specialist in stocks listed on the New York Stock Exchange, whose operations consist of matching buy and sell orders given to him by other brokers and of buying and selling his specialties on margin as a speculation, is not a dealer in such stocks and may not inventory them under article 105 of Regulations 74. Other securities acquired for investment and used as collateral for a margin account were not acquired for resale and as to such securities petitioners were not…
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1. A specialist in stocks listed on the New York Stock Exchange, whose operations consist of matching buy and sell orders given to him by other brokers and of buying and selling his specialties on margin as a speculation, is not a dealer in such stocks and may not inventory them under article 105 of Regulations 74. Other securities acquired for investment and used as collateral for a margin account were not acquired for resale and as to such securities petitioners were not dealers. 2. Assessments levied by the exchange on members for operating expenses are deductible as ordinary and necessary…
1Opinion of the Court
*1300OPINION.
Arundell:
Briefly restating the facts in the case of James B. Lowell, it appears that he was a specialist in three stocks on the New York Stock Exchange. He owned other securities, which were hypothecated as collateral for his marginal account. He inventoried both groups of securities at cost or market, whichever was lower. He entered a partnership in March of 1929 with the other petitioner and continued specializing in the same stocks as theretofore. The partnership had no opening inventory and its closing inventory consisted entirely of two of the stocks specialized in, which it…
2Cases cited5 opinions
- Adirondack Sec. Corp. v. CommissionerUnited States Board of Tax Appeals · 1931
- Hall v. CommissionerUnited States Board of Tax Appeals · 1934
- Donander Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Oil Shares, Inc. v. CommissionerUnited States Board of Tax Appeals · 1934
- Phoenix Ins. Co. v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by2 opinions
- Lowell v. CommissionerUnited States Board of Tax Appeals · 1934
- Securities-Allied Corp. v. CommissionerUnited States Board of Tax Appeals · 1937