Polachek v. Commissioner
United States Tax Court
1. Losses realized by petitioner in trading in commodity futures contracts were capital losses subject to the limitations of section 117 (d), Internal Revenue Code. 2. Expenses incurred in planning and preliminary organization of an investment advisory service are not deductible as ordinary and necessary expenses of carrying on a trade or business. 3. Where taxpayer receives a refund of taxes for an earlier year by reason of a carry-back under section 3780, Internal Revenue…
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1. Losses realized by petitioner in trading in commodity futures contracts were capital losses subject to the limitations of section 117 (d), Internal Revenue Code. 2. Expenses incurred in planning and preliminary organization of an investment advisory service are not deductible as ordinary and necessary expenses of carrying on a trade or business. 3. Where taxpayer receives a refund of taxes for an earlier year by reason of a carry-back under section 3780, Internal Revenue Code, to which he is not entitled, the period in which the Commissioner may assess a deficiency for the amount of the…
1Opinion of the Court
OPINION.
Apjjndell, Judge:
We have already decided that commodity future contracts, which are bought and sold for one’s own account and which are not hedging transactions, are capital assets, and subject to the capital loss limitations of section 117 (d) of the Internal Revenue Code. Modesto Dry Yard, Inc., 14 T. C. 374; Tennessee Egg Co., 47 B. T. A. 558; Commissioner v. Covington, (C. A. 5) 120 F. 2d 768.
The petitioner attempts .to avoid the above rule by arguing that he was engaged in the trade or business of buying and selling futures contracts during the 4 critical months of 1947 in which…
2Cases cited4 opinions
- Frank v. CommissionerUnited States Tax Court · 1953
- Commissioner of Internal Revenue v. CovingtonCourt of Appeals for the Fifth Circuit · 1941
- Leuthesser v. CommissionerUnited States Tax Court · 1952
- Bouchey v. CommissionerUnited States Tax Court · 1953
3Cited by83 opinions
- Richmond Television Corporation v. United StatesCourt of Appeals for the Fourth Circuit · 1965
- Goodwin v. CommissionerUnited States Tax Court · 1980
- Walet v. CommissionerUnited States Tax Court · 1958
- Radio Station WBIR, Inc. v. CommissionerUnited States Tax Court · 1959
- Pesch v. CommissionerUnited States Tax Court · 1982
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