Chang Hsiao Liang v. Commissioner
United States Tax Court
Petitioner, a nonresident alien whose securities were managed primarily for investment purposes by a resident commission agent, held, on facts, not subject to tax on capital gains as not being engaged in a trade or business within the United States under section 211 (b), Internal Revenue Code of 1939.
1Opinion of the Court
OPINION.
Opper, Judge:
Petitioner, a nonresident alien, was not present in this country in 1946 nor, apparently, at any other time after he entered into the agency agreement in 1932. He left the management of his considerable account entirely to the discretion of his agent. The latter invested petitioner’s funds in stocks and securities. He never acquired any hedges; never made short sales; and never purchased “puts” or “calls.” His commission in excess of a fixed salary was based on total earnings of the account, regardless of source.
Purchase and sale activity in the account during 1946, the…
2Cases cited6 opinions
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Commissioner of Internal Revenue v. NubarCourt of Appeals for the Fourth Circuit · 1950
- Adda v. CommissionerUnited States Tax Court · 1948
- Kane v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1938
- Nubar v. CommissionerUnited States Tax Court · 1949
1 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Mayer v. United StatesUnited States Court of Federal Claims · 1994
- Chang Hsiao Liang v. CommissionerUnited States Tax Court · 1955