ZIMMERMANN v. COMMISSIONER
United States Board of Tax Appeals
Where a husband sold securities through a broker at the market price to his sife, and she sold other securities through the same broker at the market price to her husband; each spouse having ample funds in his own name to pay for the securities so purchased; each spouse having a separate account with the broker; each spouse maintaining separate books of account and the sales in each case being conducted in the usual manner; there being no agreement for return of purchase…
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Where a husband sold securities through a broker at the market price to his sife, and she sold other securities through the same broker at the market price to her husband; each spouse having ample funds in his own name to pay for the securities so purchased; each spouse having a separate account with the broker; each spouse maintaining separate books of account and the sales in each case being conducted in the usual manner; there being no agreement for return of purchase price, for repurchase or reacquisition, and there being actually no reacquisition of any such securities by either…
1Opinion of the Court
*284OPINION.
Miller:
These cases present for our consideration a familiar device for tax avoidance, now prohibited by section 24 (a) (6) of *285the Revenue Act of 1934,1 namely, the transfer of securities by one spouse to the other, to establish capital losses for deduction from income.
As the transactions involved in each of the two cases occurred prior to the enactment of the 1934 Act, our decision turns upon the question whether these transfers constituted bona-fide sales. That question turns upon the further question whether the seller, in each case, parted, finally with all title and right of every…
2Cases cited4 opinions
- Poe v. SeabornSupreme Court of the United States · 1930
- Fitzgerald v. KwaterskiSuperior Court of Pennsylvania · 1934
- Fitzgerald v. Kwaterski Et Ux.Supreme Court of Pennsylvania · 1935
- Goedecke v. Mock Et Ux.Superior Court of Pennsylvania · 1934
3Cited by2 opinions
- Pleasants v. United StatesUnited States Court of Claims · 1938
- ZIMMERMANN v. COMMISSIONERUnited States Board of Tax Appeals · 1937