Commissioner of Internal Revenue v. Kohn

DOBIE, Circuit Judge.

This is an appeal by the Commissioner of Internal Revenue from the decision of the Tax Court of the United States allowing certain long-term capital losses to the petitioners, August Kohn and Dorita Kohn, husband and wife, for the taxable year 1941. The facts are not in dispute.

Kohn bought and sold securities for his own account; he also bought and sold securities as agent, and for the account, of the wife. Each had a separate brokerage account with the branch office, at Columbia, South Carolina, of a New York brokerage firm. Separate bank accounts were kept by Kohn and…