Malden Knitting Mills v. Commissioner
United States Tax Court
1. Held: Petitioner's purported purchase on February 14, 1955, of 3,000 shares of certain stock, "dividend on," from Keizer & Co., a securities dealer, and purported resale of the 3,000 shares, "ex dividend," to Keizer & Co. on February 15, 1955, reversing the transaction, were a sham.
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1. Held: Petitioner's purported purchase on February 14, 1955, of 3,000 shares of certain stock, "dividend on," from Keizer & Co., a securities dealer, and purported resale of the 3,000 shares, "ex dividend," to Keizer & Co. on February 15, 1955, reversing the transaction, were a sham. Accordingly, petitioner is not entitled to a short-term capital loss deduction in connection with the alleged resale and a dividends-received deduction in respect of an amount received from Keizer & Co. which purported to represent dividends on the 3,000 shares. 2. Held, petitioner may not deduct its so-called…
1Opinion of the Court
OPINION
Katjm, Judge:
1. We have found as a fact that Malden’s “purchase” and “resale” of the 3,000 shares of Railway stock were merely component parts of a sham. Although there was testimony calculated to lead us to the conclusion that Malden made a bona fide purchase of such shares, we did not believe it. We heard and observed both Feuerstein and Keizer, and the short answer to petitioner’s position is that we had no confidence in their testimony in this respect.
It must be remembered that Malden’s “purchase” and “resale” of 3,000 shares of Eailway stock were parts of a larger picture…
2Cases cited34 opinions
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Tank Truck Rentals, Inc. v. CommissionerSupreme Court of the United States · 1958
- Lilly v. CommissionerSupreme Court of the United States · 1952
- Eli D. Goodstein v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Eli D. GoodsteinCourt of Appeals for the First Circuit · 1959
- Carl E. Weller and Emily I. Weller v. Commissioner of Internal Revenue, W. Stuart Emmons v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1959
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3Cited by12 opinions
- Karl F. Knetsch and Eva Fay Knetsch v. The United StatesUnited States Court of Claims · 1965
- William W. Saunders and Gertrude H. Saunders v. United StatesCourt of Appeals for the Ninth Circuit · 1971
- Barnett v. CommissionerUnited States Tax Court · 1965
- Charles B. Benenson and Dorothy Cullman v. United StatesCourt of Appeals for the Second Circuit · 1967
- Gawler v. CommissionerUnited States Tax Court · 1973
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