Paley v. Commissioner
United States Tax Court
Sec. 117 (j) (2), I. R. C., 1939 -- Partnership Gain and Individual Loss. -- Partnership long-term gains from non-capital assets were long-term capital gains under section 117 (j) in computing the distributable shares of the partnership income, and a partner's share of such gains does not offset his long-term losses from individually owned non-capital assets under section 117 (j) (2).
1Opinion of the Court
opinion.
Murdock, Judge:
The Commissioner determined deficiencies in income tax of the petitioners of $16,042.31 for 1948 and $20,206.78 for 1949. The only issue for decision is whether the individual section 117 (j) (Internal Revenue Code of 1939) losses of the taxpayer-partner are to be offset by his share of section 117 (j) gains of the partnership. The stipulation of the parties is adopted as the findings of fact.
The petitioners, husband and wife, filed joint returns for the years 1948 and 1949 with the collector of internal revenue for the southern district of California.
The petitioners,…
2Cases cited1 opinion
- Ammann v. CommissionerUnited States Tax Court · 1954
3Cited by3 opinions
- Townend v. CommissionerUnited States Tax Court · 1956
- Paley v. CommissionerUnited States Tax Court · 1954
- Townend v. CommissionerUnited States Tax Court · 1956