Carl Marks & Co. v. Commissioner
United States Tax Court
Petitioner, a dealer in foreign securities, transferred all of its domestic securities and certain of its foreign securities out of its inventory to an investment account on December 29, 1941. Held, that the securities so transferred were thereafter held for speculative or investment purposes only and that the profits from the sale of the securities involved are taxable in accordance with sections 117 and 711 (a) (1) (B) of the Internal Revenue Code.
1Opinion of the Court
OPINION.
Hill, Judge:
The question is whether certain domestic and foreign securities which petitioner carried in its dealer account and which were transferred to its investment account on December 29, 1941, were thereafter capital assets within the definition of section 117 (a) of the Internal Revenue Code. If so, the profits realized from the sale of those securities during 1942 are taxable at the capital gain rates in accordance with the provisions of section 117, Internal Revenue Code, and not as ordinary income as respondent contends, and, in addition, the amount of such gain from those…
2Cases cited1 opinion
- Schafer v. HelveringSupreme Court of the United States · 1936
3Cited by5 opinions
- Williamson v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1953
- Glisson v. CommissionerUnited States Tax Court · 1981
- Cedarburg Fox Farms, Inc. v. United States of America, Cedarburg Fox Farms, Inc. v. United StatesCourt of Appeals for the Seventh Circuit · 1960
- Asmussen v. United StatesDistrict Court, D. South Dakota · 1984
- Carl Marks & Co. v. CommissionerUnited States Tax Court · 1949