Legal Opinion

Adda v. Commissioner

United States Tax Court

Decided February 10, 1948No. Docket No. 8834PublishedCited by 19 opinions

Petitioner, a nonresident alien, empowered his brother, who resided in the United States, to deal in commodity futures at his own discretion through resident brokers in the United States for petitioner's account. Petitioner's brother exercised this authority in 1940 and 1941, trading in substantial amounts.

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Petitioner, a nonresident alien, empowered his brother, who resided in the United States, to deal in commodity futures at his own discretion through resident brokers in the United States for petitioner's account. Petitioner's brother exercised this authority in 1940 and 1941, trading in substantial amounts. Held, petitioner was engaged in trade or business in the United States and is taxable as a nonresident alien so engaged; held, further, that the petitioner is entitled to a net short term capital loss carry-over from 1940 to 1941.

1Opinion of the Court

OPINION.

Arnold, Judge:

The first issue is whether in the taxable year 1941 the petitioner, a nonresident alien, was engaged in trade or business in the United States or had an office or place of business therein, within the meaning of section 211 of the Internal Revenue Code, as applicable in 1941. Under section 211 (b) 1 the phrase “engaged in trade or business within the United States” does not include the effecting of transactions in the United States in commodities through a resident broker. The petitioner contends that this provision applies and that the profits of the transactions…

2Cases cited1 opinion

  1. Wiesler v. CommissionerUnited States Tax Court · 1946

3Cited by19 opinions

  1. Commissioner of Internal Revenue v. NubarCourt of Appeals for the Fourth Circuit · 1950
  2. United States v. BalanovskiCourt of Appeals for the Second Circuit · 1956
  3. United States v. BalanovskiCourt of Appeals for the Second Circuit · 1956
  4. Nubar v. CommissionerUnited States Tax Court · 1949
  5. Purvis v. CommissionerUnited States Tax Court · 1974

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