Parker v. Commissioner
United States Board of Tax Appeals
JOINT VENTURE - DEDUCTION OF NONCAPITAL LOSS UNDER SECTION 23(r), REVENUE ACT OF 1932. - Petitioners, husband and wife, in 1933 established a so-called joint brokerage or trading account with funds supplied solely by the husband. The wife contributed neither capital nor services to the enterprise and took no part in its conduct. There was no agreement that she should share in the profits or losses.
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JOINT VENTURE - DEDUCTION OF NONCAPITAL LOSS UNDER SECTION 23(r), REVENUE ACT OF 1932. - Petitioners, husband and wife, in 1933 established a so-called joint brokerage or trading account with funds supplied solely by the husband. The wife contributed neither capital nor services to the enterprise and took no part in its conduct. There was no agreement that she should share in the profits or losses. Held, such account did not constitute a joint venture, but was in fact the individual account and property of the husband, and he is entitled to deduct the noncapital loss sustained in that account…
1Opinion of the Court
*426OPINION.
Hill :
In determining the deficiency here in controversy respondent taxed all of the gain derived from the individual securities trading account of the petitioner, Harold G. Parker, and disallowed the deduction of any part of the loss sustained in the so-called joint ac*427count carried in the names of both petitioners. Respondent’s action was based upon the theory that the joint account constituted a joint venture which, for tax purposes, must be treated as a partnership,1 and that the deduction by an individual partner of his share of a partnership loss resulting from the sale of…
2Cases cited7 opinions
- Tyler v. United StatesSupreme Court of the United States · 1930
- Moskowitz v. MarrowNew York Court of Appeals · 1929
- Warburton v. WhiteSupreme Court of the United States · 1900
- Chester v. . DickersonNew York Court of Appeals · 1873
- In Re the Final Accounting of Executors of AlbrechtNew York Court of Appeals · 1892
2 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Grayson v. CommissionerUnited States Tax Court · 1954
- Parker v. CommissionerUnited States Board of Tax Appeals · 1939