Hugo Black

“ Are sales commissions paid by a taxpayer engaged in the business of buying and selling securities [3] deductible as ordinary and necessary expenses under Section 23 (a) of the Revenue Act of 1934, [4] or are they to be treated as offsets against selling price relevant only to the determination of capital losses or gains? ”

“ We therefore conclude that the clause 'when such commissions are not an ordinary and necessary business expense' was intended to be and is controlling only in the case of securities dealers. [11] In the case of a trader on his own account where there are no compelling practical grounds for treating sales commissions as such an expense, we find no persuasive reason for distinguishing, under the statute and regulations, between sales commissions like those before us and purchase commissions like those of the Winmill case. ”