- 18 -
of the trade, including the amount of the commission, and lists
the total "amount due". Petitioner encloses a remittance stub
and a return envelope with the confirmation. The customer does
not have the right to cancel an order that petitioner executes in
accordance with the instructions of the customer.
In applying the all events test, this and other courts have
distinguished between conditions precedent, which must occur
before the right to income arises, and conditions subsequent, the
occurrence of which will terminate an existing right to income,
but the presence of which does not preclude accrual of income.
Central Cuba Sugar Co. v. Commissioner, 198 F.2d 214, 217-218 (2d
Cir. 1952), affg. in part and revg. in part 16 T.C. 882 (1951);
Wien Consol. Airlines, Inc. v. Commissioner, 60 T.C. 13, 15
(1973), affd. 528 F.2d 735 (9th Cir. 1976); Buckeye Intl., Inc.
v. Commissioner, T.C. Memo. 1984-668; see also Resale Mobile
Homes, Inc. v. Commissioner, 965 F.2d 818, 824 (10th Cir. 1992),
affg. 91 T.C. 1085 (1988).6
We think the above factors indicate that petitioner’s
execution of a trade for a customer is a condition precedent that
6Although Central Cuba Sugar Co. v. Commissioner, 198 F.2d
214, 217-218 (2d Cir. 1952), affg. in part and revg. in part 16
T.C. 882 (1951), Wien Consol. Airlines, Inc. v. Commissioner, 60
T.C. 13, 15 (1973), affd. 528 F.2d 735 (9th Cir. 1976), and
Buckeye Intl., Inc. v. Commissioner, T.C. Memo. 1984-668,
involved the accrual of deductions rather than the proper
reporting of income, this Court has recognized that similar
considerations apply with respect to both issues. See Simplified
Tax Records, Inc. v. Commissioner, 41 T.C. 75, 79 (1963); Buckeye
Intl., Inc. v. Commissioner, supra.
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