- 29 -
Memo. 2005-167; Chen v. Commissioner, supra. Ordinary losses are
thereby made available to offset ordinary income and are not
subject to the $3,000 (or $1,500) limitation imposed by section
1211(b) on the deduction by an individual of capital losses in
excess of capital gains. E.g., Vines v. Commissioner, supra at
288; Knish v. Commissioner, supra; Lehrer v. Commissioner, supra;
Chen v. Commissioner, supra.
C. Attribution of E Trade Transactions
The doctrine of the duty of consistency, also known as
“quasi-estoppel” is among the equitable principles applicable in
this Court. E.g., Herrington v. Commissioner, 854 F.2d 755, 757
(5th Cir. 1988), affg. Glass v. Commissioner, 87 T.C. 1087
(1986); Cluck v. Commissioner, 105 T.C. at 331; LeFever v.
Commissioner, 103 T.C. at 541; Janis v. Commissioner, T.C. Memo.
2004-117. The doctrine, derived from R.H. Stearns Co. v. United
States, 291 U.S. 54 (1934), rests upon the premise that a
taxpayer has a duty to be consistent in the tax treatment of
items and will not be permitted to benefit from the taxpayer’s
own prior error or omission. E.g., Herrington v. Commissioner,
supra at 757; Shook v. United States, 713 F.2d 662, 666-667 (11th
Cir. 1983); Beltzer v. United States, 495 F.2d 211, 212 (8th Cir.
1974); Estate of Letts v. Commissioner, 109 T.C. 290, 296 (1997),
affd. without published opinion 212 F.3d 600 (11th Cir. 2000);
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