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  • Morris Shanis and Beckie Shanis v. Commissioner of Internal Revenue, 213 F.2d 151, 3rd Cir. (1954)

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    The document is a court case regarding whether a partnership realized short-term or long-term capital gains from settling "when issued" securities contracts. The Tax Court found short-term capital gains. The appellate court: 1) Found the Tax Court had an ample factual basis to conclude the settlement resulted in a short-term capital transaction through the sale and exchange of the underlying securities, rather than the contract rights. 2) Ruled the Tax Court properly recomputed the taxpayers' deficiencies under its rules, as the recomputations directly followed the court's findings and did not constitute new issues. 3) Affirmed the Tax Court's decisions.

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    Filed: 1954-06-01 Precedential Status: Precedential Citations: 213 F.2d 151 Docket: 11287_1

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    The document is a court case regarding whether a partnership realized short-term or long-term capital gains from settling "when issued" securities contracts. The Tax Court found short-term capital gains. The appellate court: 1) Found the Tax Court had an ample factual basis to conclude the settlement resulted in a short-term capital transaction through the sale and exchange of the underlying securities, rather than the contract rights. 2) Ruled the Tax Court properly recomputed the taxpayers' deficiencies under its rules, as the recomputations directly followed the court's findings and did not constitute new issues. 3) Affirmed the Tax Court's decisions.

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    Public Domain
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    4 views2 pages

    Morris Shanis and Beckie Shanis v. Commissioner of Internal Revenue, 213 F.2d 151, 3rd Cir. (1954)

    Uploaded by

    Scribd Government Docs
    The document is a court case regarding whether a partnership realized short-term or long-term capital gains from settling "when issued" securities contracts. The Tax Court found short-term capital gains. The appellate court: 1) Found the Tax Court had an ample factual basis to conclude the settlement resulted in a short-term capital transaction through the sale and exchange of the underlying securities, rather than the contract rights. 2) Ruled the Tax Court properly recomputed the taxpayers' deficiencies under its rules, as the recomputations directly followed the court's findings and did not constitute new issues. 3) Affirmed the Tax Court's decisions.

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    of 2

    213 F.

    2d 151
    54-1 USTC P 9426

    Morris SHANIS and Beckie Shanis, Petitioners,


    v.
    COMMISSIONER OF INTERNAL REVENUE, Respondent.
    Nos. 11286, 11287.

    United States Court of Appeals


    Third Circuit.
    Argued May 18, 1954.
    Decided June 1, 1954.

    On Petitions for Review of the Decisions of the Tax Court of the United
    States.
    Leonard Sarner, Philadelphia, Pa. (Wolkin, Sarner & Cooper,
    Philadelphia, Pa., on the brief), for petitioners.
    Karl Schmeidler, Washington, D.C. (H. Brian Holland, Asst. Atty. Gen.,
    Ellis N. Slack, Lee A. Jackson, Sp. Assts. to Atty. Gen., on the brief), for
    respondent.
    Before McLAUGHLIN, STALEY and HASTIE, Circuit Judges.
    PER CURIAM.

    The first question presented is whether petitioners' partnership on the


    settlement of sell and buy contracts of 'when issued' securities realized a net
    short-term capital gain as found by the Tax Court or a long-term capital gain
    and a short-term capital loss as urged by petitioners.

    We find ample factual basis in the record for the Tax Court's conclusion that
    what took place on the settlement date was a sale and exchange not of the
    contract rights but of the securities involved which resulted in a short-term
    capital transaction.

    The second question concerns the recomputations of taxpayers' deficiencies.

    The second question concerns the recomputations of taxpayers' deficiencies.


    We think that these were properly calculated under Rule 50 of the rules of that
    court. They were the direct consequence of the Tax Court's findings and
    opinion and made necessary by the differences between those findings and
    opinion and the earlier determination by the Commissioner. They did not
    constitute new issues.

    The decisions of the Tax Court, 19 T.C. 641, will be affirmed.

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