Jonathan P. Wolff and Margaret A. Wolff v. Commissioner of Internal Revenue

TELESCA, District Judge:

INTRODUCTION

Appellants, Jonathan and Margaret Wolff (the “taxpayers”), appeal from a decision of the United States Tax Court, Honorable Steven J. Swift, determining taxpayers’ joint income tax liabilities for the years 1979,1980, and 1981. In a reviewed opinion, fourteen of the fifteen Tax Court judges agreed that certain losses which resulted from the cancellation of forward contracts by Holly Trading Associates. (“Holly”) should be characterized as capital rather than ordinary losses. Holly was a general partnership in which appellant Jonathan Wolff held an interest.…