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petitioner is a trader or investor only because the expenses
petitioner claimed for Corrigan Enterprises would not be trade or
business expenses if petitioner were an investor. Having found
that petitioner is not entitled to the deductions he claimed for
Corrigan Enterprises, we need not determine whether petitioner is
a trader or investor.
III. Capital Gains and Losses
Although petitioner attempted to file joint Federal income
tax returns, he was not entitled to do so because he and Mrs.
Corrigan were divorced at the time he attempted to file. Had
petitioner and Mrs. Corrigan been entitled to file joint returns,
it would not matter that the gains and losses from the joint
account and Mrs. Corrigan’s account were netted with the gains
and losses in petitioner’s account. Because petitioner and Mrs.
Corrigan were not entitled to file joint returns, we must decide
whether petitioner was entitled to report the gains or losses
from each of the three accounts.
When transacted through a brokerage account, gains and
losses from the sale of stock and options are reportable by the
owner of the account in the absence of any evidence demonstrating
that another person is the true or equitable owner. See Ruth v.
Commissioner, 962 F.2d 14 (9th Cir. 1992), affg. without
published opinion T.C. Memo. 1991-30.
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