Dart v. Commissioner

*128OPINION.

Teammell:

The petitioners do not question the correctness of the action of the respondent in including in taxable income the amount of interest credited to their’short accounts, but contend that the amounts of the charges made against their accounts as the equivalent of dividends paid on stock which they had sold short should be allowed as ordinary and necessary expenses and for the purpose of determining the profit from the short sales should not be added to the cost of stock when purchased to complete such short sales. The respondent contends that a short sale of stock is not a…