Brown v. Commissioner
United States Tax Court
Petitioners claimed deductions for fees and losses allegedly incurred with respect to forward contracts for purchase and sale of Ginnie Maes and Freddie Macs. Held, the forward contracts and related transactions were factual shams and the deductions for fees and losses are disallowed. Held, further, the addition to tax under sec. 6653(a) I.R.C. of 1954 as determined by respondent against one petitioner is sustained, but damages under sec. 6673 are declined.
1Opinion of the Court
Shields, Judge-.
Respondent determined deficiencies in petitioners’ Federal income tax as follows:
Additions to tax
Petitioner 2 Year Deficiency sec. 6653(a)3
Brown 1979 $49,562.50
Sochin 1979 9,402.00
1980 25,535.00
1981 18,288.00
1977 2,283.00 Morgan $114.00
1979 104,022.00 5,217.35
1980 194,141.55 10,141.55
1979 205,181.69 Leinbach
1980 263,728.31
1981 218,036.46
After concessions, the issues remaining for decision are: (1) Whether petitioners realized deductible losses under section 165(c)(2) on forward contracts as claimed on their income tax returns for 1979, 1980, and/or 1981; (2) whether the fees…
2Cases cited29 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Gregory v. HelveringSupreme Court of the United States · 1935
- Higgins v. SmithSupreme Court of the United States · 1940
- Knetsch v. United StatesSupreme Court of the United States · 1960
24 more not listed; retrieve them via the Exa API.
3Cited by106 opinions
- Freytag v. CommissionerUnited States Tax Court · 1987
- Glass v. CommissionerUnited States Tax Court · 1986
- James E. Sochin v. Commissioner of Internal Revenue, Dennis S. Brown v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1988
- McCrary v. CommissionerUnited States Tax Court · 1989
- Kenneth P. Kirchman and Budagail S. Kirchman, Leo P. Ayotte and Nancy C. Ayotte v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1989
101 more not listed; retrieve them via the Exa API.