Harry H. Mitchell June M. Mitchell v. Commissioner Internal Revenue Service

992 F.2d 1219 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Harry H. MITCHELL; June M. Mitchell, Petitioners-Appellants, v. COMMISSIONER INTERNAL REVENUE SERVICE, Respondent-Appellee. No. 91-70706. United States Court of Appeals, Ninth Circuit. Argued and Submitted April 5, 1993. Decided April 29, 1993. Before WALLACE, Chief Judge, and O'SCANNLAIN and FERNANDEZ, Circuit Judges. 1 MEMORANDUM * 2 Harry H. Mitchell and June M. Mitchell, husband and wife, appeal the tax court's judgment following a trial in which the tax court upheld the Commissioner's deficiency determinations for the Mitchells' 1973, 1976, and 1980 tax returns. The tax court found that: (1) Mr. Mitchell's purchase of a stock warrant was a nondeductible capital expenditure, not a deductible business expense, under 26 U.S.C. § 162 ; (2) He was required to recognize a gain upon his transfer of the stock warrant, in accordance with 26 U.S.C. § 83 ; and (3) He was not permitted to exclude from income…