Wakelee v. Commissioner
United States Tax Court
Payments made pursuant to agreements between petitioner and a client for trading in securities under which petitioner became entitled to all dividends and 25 per cent of profit from sales, in return for his obligation to pay client an annual return upon sums invested, held deductible as an expense for the production or collection of income under section 23 (a) (2), Internal Revenue Code.
1Opinion of the Court
OPINION.
Offer, Judge:
That petitioner’s arrangement with Mrs. Taylor was entered into “for the production or collection of income”1 cannot be doubted. See 58th Street Plaza Theatre, Inc., (Leo Brecher), 16 T. C. 469, 477. He became entitled to all of the dividends and a quarter of the capital gains arising from the securities covered by the agreement, benefits which were clearly income to him and were so dealt with by him. That he was required under the agreement to pay Mrs. Taylor an annual percentage on the money put up by her may not have been “ordinary” in the sense of “usual” or…
2Cases cited5 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Wiesler v. CommissionerUnited States Tax Court · 1946
- 58th Street Plaza Threatre, Inc. v. CommissionerUnited States Tax Court · 1951
- Hess v. CommissionerUnited States Tax Court · 1946
- Commissioner of Internal Revenue v. WilsonCourt of Appeals for the Ninth Circuit · 1947
3Cited by2 opinions
- Dolin v. CommissionerUnited States Tax Court · 1988
- Wakelee v. CommissionerUnited States Tax Court · 1951