Archive - July 2011
Richard Kay, Jr v. Comm’r – Trader or Investor, Sometimes it Feels like a Coin Toss July 07, 2011
Richard Kay, Jr v. Comm’r., T.C. Memo. 2011-159 (July 6, 2011) is yet another case that tackles the facts and circumstances query of a trader v. investor. Facts and circumstances is one of those things that you really cannot be sure what would come out of. Many would argue that in cases that turn on the facts and circumstances inquiry there is a very high element of chance and sometimes they feel more or less like a coin toss.Why does the question of a trader v. investor matter to many people? Well, if a person buys and sells the same securities within the taxable year, in either case...