- 5 -
2/89 PaineWebber 2 2
3/89 PaineWebber 1 0
4/89 PaineWebber 0 1
5/89 PaineWebber 2 0
First Union 1 0
6/89 PaineWebber 1 0
7/89 PaineWebber 3 1
First Union 0 1
8/89 PaineWebber 4 9
9/89 PaineWebber 0 0
10/89 PaineWebber2 0 0
1 Petitioner closed his Ferris & Co. brokerage account in December 1987.
2 Petitioner closed his PaineWebber brokerage account in October 1989.
Petitioner reported Schedule C losses of $123,801 in 1987,
$11,604 in 1988, and $5,349 in 1989 resulting from his stock
activity. Respondent disallowed petitioner's Schedule C losses
for 1987, 1988, and 1989. Respondent determined that petitioner
was not a "dealer" or "trader" in securities and that the net
losses he realized were capital losses subject to the limitations
of sections 165(f) and 1211(b). Respondent also determined that
petitioner's stock transactions were reportable on Schedule D,
his investment expenses were reportable on Schedule A, and his
dividend income was reportable on Schedule B. Petitioner argues
that he was either a "dealer" or "trader" in securities, and the
losses and related items therefrom were properly reportable on
Schedule C.
Section 165 generally provides a deduction for any loss
sustained during the taxable year and not compensated by
insurance or otherwise. Section 165(f), however, provides that
losses from the sales of capital assets should be allowed only to
the extent allowed under sections 1211 and 1212. Section 1221
defines capital assets as any property held by the taxpayer,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011