Rosenthal v. New York State Tax Commission

OPINION OF THE COURT

Levine, J.

Petitioners Sidney Rosenthal, deceased, and his wife were residents of the State of Florida during the period in question. On November 1, 1967, Rosenthal became a limited partner in the New York City brokerage firm of Emanuel, Deetjen & Company (Emanuel, Deetjen) with a capital investment of $100,000. At the same time, he and Emanuel, Deetjen entered into an “agreement subordinating account” under which petitioner loaned the firm $250,000 in securities for purposes of complying with rule 325 of the New York Stock Exchange. That rule limits the extension of credit…