Fogel v. Commissioner of Internal Revenue

STRUM, Circuit Judge.

This is a petition to review a decision of the Tax Court sustaining a deficiency assessment in petitioner’s income taxes for the year 1945.

Petitioner, who is not a dealer in grain nor commodity futures, on June 19, 1945, purchased 50,000 bushels of rye, for his own account, on a grain futures contract. He sold it on December 19, 1945, realizing a gain of $16,662.50, which he returned for income tax purposes as a long; term capital gain, taxable on a 50% basis. The Commissioner of Internal Revenue held that the gain was short term, taxable on a 100% basis, and redetermined…