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In NA General Partnership v. Commissioner the Tax Court held that notes issued to a parent by a subsidiary in connection with the acquisition of a target were properly characterized as debt and were not equity for tax purposes
In Summitt v. Comm’r, 134 T.C. No. 12 (May 20, 2010) the Tax Court held that an over-the-counter foreign currency option was not a contract subject to Section 1256 of the Code, and accordingly, the taxpayer could not trigger the loss on a “majorminor currency” transaction by marking the foreign currency contract to market under Section 1256 of the Code
Calloway v. Comm’r, decided on July 8, 2010, in the Tax Court, held (i) that a purported non-recourse loan equal to 90 of the value of stock held by a taxpayer was, in substance, a sale for U.S. federal income tax purposes, and (ii) that the transaction was not a securities lending arrangement under Section 1058 of the Code
