Heggestad v. Commissioner
United States Tax Court
P was a partner in a commodities brokerage firm. The partnership earned commissions for its services in effectuating customers' transactions in commodities futures. P also invested in commodities futures for his own account. In 1979 and 1980, P paid the partnership commissions in connection with commodities futures transactions for his personal account. Held: Certain losses incurred by P on the sale of Treasury bill futures contracts were capital, and not ordinary, losses.
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P was a partner in a commodities brokerage firm. The partnership earned commissions for its services in effectuating customers' transactions in commodities futures. P also invested in commodities futures for his own account. In 1979 and 1980, P paid the partnership commissions in connection with commodities futures transactions for his personal account. Held: Certain losses incurred by P on the sale of Treasury bill futures contracts were capital, and not ordinary, losses. P was not entitled to ordinary loss treatment under Corn Products Refining Co. v. Commissioner, 350 U.S. 46 (1955). Held,…
1Opinion of the Court
HAMBLEN, Judge:
Respondent determined deficiencies in petitioners’ income tax for the years 1979 and 1980, in the respective amounts of $140,005 and $56,815.
The issues for decision are:(1) Whether $85,360 of losses incurred by petitioner Gerald A. Heggestad in 1980 in selling certain Treasury bill futures contracts were capital losses rather than ordinary losses; and(2) Whether petitioner Gerald A. Heggestad’s distributive share of partnership income from his commodities brokerage firm includes commissions he paid to the firm on trades for his personal account.
FINDINGS OF FACT
At the time they…
2Cases cited15 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Neuberger v. CommissionerSupreme Court of the United States · 1940
- Booth Newspapers, Inc. v. The United States. The Evening News Association v. The United StatesUnited States Court of Claims · 1962
- W. W. Windle Company v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1977
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3Cited by5 opinions
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- Shotts v. CommissionerUnited States Tax Court · 1990