Main Line Distributors, Inc. v. Commissioner
United States Tax Court
Purchase of call and simultaneous short sale of identical stock closed out together within same month held to result only in net short-term capital loss not entitling petitioner to deduct as business expense amount paid as reimbursement for dividend previously declared, and paid while petitioner was short.
1Opinion of the Court
OPINION.
OppeR, eJudge:
Respondent treated the call and short sale as parts of a single transaction. He computed the net result as follows:
Costs:
Paid to Oppenheimer & Co. for call_ $750. 00
Charge by Oppenheimer & Co. for shares pursuant to call_ 32, 250. 00
Amount paid lender of stock incident to short position- 12, 500. 00 $45, 500.00
Less:
Credit by Oppenheimer & Co. on exercise of option for dividend paid during option period_ 12, 500. 00
Proceeds of short sale_ 31, 479. 82 43, 979. 82
Net short-term capital loss_ 1, 520.18
In this we think he was correct.
The short sale and the purchase of the…
2Cases cited15 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- Minnesota Tea Co. v. HelveringSupreme Court of the United States · 1938
- Wilson v. CommissionerUnited States Tax Court · 1948
10 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Ditunno v. CommissionerUnited States Tax Court · 1983
- Main Line Distributors, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1963
- 1955 Production Exposition, Inc. v. CommissionerUnited States Tax Court · 1963
- 1955 Production Exposition, Inc. v. CommissionerUnited States Tax Court · 1963
- Ditunno v. CommissionerUnited States Tax Court · 1983
4 more not listed; retrieve them via the Exa API.