Loewi & Co. v. Commissioner
United States Tax Court
Petitioner is a stockbroker. On September 18, 1946, its customer was obligated to purchase new stock of certain railroads when, as, and if issued at a price which exceeded the then selling price of the stock on a "when-issued" basis by $ 123,759.88. The customer had failed to supply additional margin which was demanded by petitioner.
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Petitioner is a stockbroker. On September 18, 1946, its customer was obligated to purchase new stock of certain railroads when, as, and if issued at a price which exceeded the then selling price of the stock on a "when-issued" basis by $ 123,759.88. The customer had failed to supply additional margin which was demanded by petitioner. Thereupon petitioner entered into a contract with the customer whereby petitioner was assigned the when-issued contracts and assumed the liabilities under the contracts in return for title to a security deposit having a fair market value of approximately $…
1Opinion of the Court
OPINION.
BRtjce, Judge:
The instant transaction involves a broker, the petitioner, relieving its customer, Popp, of his obligations under certain when-issued contracts and personally assuming the rights and corresponding liabilities under the contracts in return for approximately $63,000 in securities. The when-issued contracts represented net commitments to purchase certain securities when, as, and if issued at a contract price which exceeded the then selling price of the securities on a when-issued basis by about $123,000.
Respondent determined that petitioner realized income on the…
2Cases cited14 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Brown v. HelveringSupreme Court of the United States · 1934
- Weiss v. WeinerSupreme Court of the United States · 1929
- Clark v. CommissionerUnited States Tax Court · 1952
9 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Jordan v. CommissionerUnited States Tax Court · 1973
- Drachman v. CommissionerUnited States Tax Court · 1954
- Loewi & Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
- Lorch v. CommissionerUnited States Tax Court · 1978
- Stavisky v. CommissionerUnited States Tax Court · 1960
12 more not listed; retrieve them via the Exa API.