1955 Production Exposition, Inc. v. Commissioner
United States Tax Court
Corporate petitioner, engaged in the promotion and operation of trade expositions, made an incidental short sale of 2,500 shares of stock in a corporation which had already adopted a plan of liquidation and declared a $ 20 liquidating dividend.
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Corporate petitioner, engaged in the promotion and operation of trade expositions, made an incidental short sale of 2,500 shares of stock in a corporation which had already adopted a plan of liquidation and declared a $ 20 liquidating dividend. Held, corporate petitioner was not a dealer or trader in securities and therefore its payment of $ 50,000 on account of the liquidating dividend on the short sale transaction was not an ordinary and necessary business expense under section 162 of the 1954 Internal Revenue Code.
1Opinion of the Court
OPINION
Mulroney, Judge:
These consolidated cases involve a deficiency in income tax determined by the respondent for the year 1955 in the amount of $26,000 in the case of 1955 Production Exposition, Inc., in dissolution, Saul Poliak, J. Stanley Halperin, and Elliott E. Ruskin, Trustees, docket No. 88556, and a liability determined by the respondent in the amount of $26,000 in the case of Saul Poliak, Transferee of 1955 Production Exposition, Inc., docket No. 88557. They present an issue of whether a business deduction results from a $50,000 payment by the petitioner corporation in a short sale…
2Cases cited13 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Wilson v. CommissionerUnited States Tax Court · 1948
- Wilson Bros. & Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1948
- Wiesler v. CommissionerUnited States Tax Court · 1946
- Clarence Mahurin v. E. v. Nash, Warden, Missouri State PenitentiaryCourt of Appeals for the Eighth Circuit · 1963
8 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- 1955 Production Exposition, Inc. v. CommissionerUnited States Tax Court · 1963