Currie v. Commissioner
United States Tax Court
The petitioners were members of a syndicate formed in mid-1962 for the purpose of acquiring, holding, and eventually selling at a profit 51 percent of the common stock of a stock and mutual life insurance company. At that time, the syndicate acquired from another syndicate (of which petitioners were also members) an option to buy the stock.
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The petitioners were members of a syndicate formed in mid-1962 for the purpose of acquiring, holding, and eventually selling at a profit 51 percent of the common stock of a stock and mutual life insurance company. At that time, the syndicate acquired from another syndicate (of which petitioners were also members) an option to buy the stock. Both syndicates were organized and controlled by an individual active in the securities business who was a specialist in the field of insurance securities. The second syndicate immediately exercised the option and purchased the stock. In mid-1963, over 6…
1Opinion of the Court
OPINION
Kern, Judge:
The respondent has determined that the stock of Northwestern National Life Insurance Co. sold by the syndicate described as the “second syndicate” in our Findings of Fact was not a capital asset under section 1221 and that the gain realized by petitioners as members of the second syndicate upon the syndicate’s sale of this stock was taxable as ordinary income pursuant to section 61. The relevant portion of section 1221 of the Internal Revenue Code of 1951 defines the term “capital asset” as “property held by the taxpayer (whether or not connected with his trade or…
2Cases cited12 opinions
- Schafer v. HelveringSupreme Court of the United States · 1936
- Estate of Freeland v. CommissionerCourt of Appeals for the Ninth Circuit · 1968
- Van Suetendael v. COMMISSIONER OF INTERNAL REVENUECourt of Appeals for the Second Circuit · 1945
- Mirro-Dynamics Corporation v. United StatesCourt of Appeals for the Ninth Circuit · 1967
- Commissioner of Internal Revenue v. CharavayCourt of Appeals for the Third Circuit · 1935
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3Cited by4 opinions
- S & H, Inc. v. CommissionerUnited States Tax Court · 1982
- United States v. Patrick Henry DiamondCourt of Appeals for the Fourth Circuit · 1986
- Currie v. CommissionerUnited States Tax Court · 1969
- S & H, Inc. v. CommissionerUnited States Tax Court · 1982