Katz v. Commissioner
United States Tax Court
P held commodities futures contracts in the form of spread, or straddle, positions, and P owned a seat on the NYMEX, the exchange on which the trades took place. Held, the per se rule of sec. 108(b) of the Deficit Reduction Act of 1984, as amended by the Tax Reform Act of 1986, does not apply because the spread transactions were executed in violation of the rules of the NYMEX.
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P held commodities futures contracts in the form of spread, or straddle, positions, and P owned a seat on the NYMEX, the exchange on which the trades took place. Held, the per se rule of sec. 108(b) of the Deficit Reduction Act of 1984, as amended by the Tax Reform Act of 1986, does not apply because the spread transactions were executed in violation of the rules of the NYMEX. Held, further, the spread transactions were not bona fide, competitive trades, so the gains and losses therefrom are not recognized for Federal tax purposes. Held, further, P has introduced no evidence to indicate that…
1Opinion of the Court
OPINION
WELLS, Judge:
Respondent determined deficiencies in petitioners’ Federal income tax for 1977 and 1978 in the amounts of $90,512 and $3,158, respectively. Respondent also determined that petitioner Edward Katz was liable for additions to tax pursuant to section 6653(b)1 for 1977 and 1978 in the amounts of $76,844 and $1,579, respectively. The issues for decision are (1) whether petitioners’ reported gains and losses from commodity spread transactions should be disallowed, and, if so, (2) whether petitioner Edward Katz is liable for additions to tax for fraud pursuant to section 6653(b).
FI…
2Cases cited35 opinions
- Holland v. United StatesSupreme Court of the United States · 1955
- Rowlee v. CommissionerUnited States Tax Court · 1983
- Stone v. CommissionerUnited States Tax Court · 1971
- Gajewski v. CommissionerUnited States Tax Court · 1976
- Beaver v. CommissionerUnited States Tax Court · 1970
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3Cited by58 opinions
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