Cowan v. Commissioner
United States Board of Tax Appeals
Petitioner's decedent sold two large blocks of corporate stocks to different individuals, one of whom had been a business associate, the other being a relative, at one dollar for each block, for the admitted purpose of reducing his income tax. The evidence shows the stocks had a value greatly in excess of the one dollar paid. Held, the respondent's denial of the alleged loss should be approved.
1Opinion of the Court
*299OPINION.
Marquette:
On December 23, 1929, the decedent disposed of one block of stock to an old friend and business associate and on the 30th day of the same month he made a disposition of other stock to his brother-in-law, and each of them paid him the same amount, one dollar. It is conceded that each transaction was consummated for the sole purpose of producing a deductible loss, and in this way the reduction of decedent’s income tax. In such case the transactions should be closely scrutinized (Harold F. Seymour, 27 B.T.A. 403), and clear proof is required; that the transactions were bona…
2Cases cited6 opinions
- Bullen v. WisconsinSupreme Court of the United States · 1916
- Ten Eyck v. . WitbeckNew York Court of Appeals · 1892
- Salmon v. WilsonCalifornia Supreme Court · 1871
- Seymour v. CommissionerUnited States Board of Tax Appeals · 1932
- Sires v. SiresSupreme Court of South Carolina · 1895
1 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Perrett v. CommissionerUnited States Tax Court · 1980
- Cowan v. CommissionerUnited States Board of Tax Appeals · 1934
- Dauth v. CommissionerUnited States Board of Tax Appeals · 1940
- Mellon v. CommissionerUnited States Board of Tax Appeals · 1937
- Perrett v. CommissionerUnited States Tax Court · 1980