Ligon v. Commissioner
United States Board of Tax Appeals
Stock pledged as collateral to secure petitioner's loan at a bank was sold for cash, subject to the lien of the bank, at a private sale for less than cost. At the time the collateral was under marginal requirements and the bank would not deliver the stock to the purchaser unless the amount for which the stock was sold was paid on petitioner's indebtedness or marginal requirements otherwise satisfied. Release of the stock was not a condition of the sale.
Read the full summary
Stock pledged as collateral to secure petitioner's loan at a bank was sold for cash, subject to the lien of the bank, at a private sale for less than cost. At the time the collateral was under marginal requirements and the bank would not deliver the stock to the purchaser unless the amount for which the stock was sold was paid on petitioner's indebtedness or marginal requirements otherwise satisfied. Release of the stock was not a condition of the sale. The stock was released to purchaser at his request in a subsequent year. The amount received for the stock was not paid and credited on the…
1Opinion of the Court
*765OPINION.
ARNOLD:
The sole issue for our determination is whether petitioner sustained a deductible loss in the tax year from the sale of the stock under the circumstances set forth in our findings of fact. That the sale was made and the purchase price paid November 15, 1933, is not in dispute. Neither is-the amount of the loss in dispute. The respondent filed no brief, but, as we understand his position, from the statements made at the hearing and from the course of his cross-examination, he relies solely on the fact that, as the stock was up for collateral to secure an indebtedness of…
2Cases cited11 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Hatch v. Oil Co.Supreme Court of the United States · 1879
- Yeatman v. Savings InstitutionSupreme Court of the United States · 1878
- In re T. A. McIntyre & Co.Court of Appeals for the Second Circuit · 1910
- Auditor General v. Bassett's EstateMichigan Supreme Court · 1929
6 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Old Colony Trust Associates v. HassettCourt of Appeals for the First Circuit · 1945
- Joyce v. CommissionerUnited States Tax Court · 1964
- James W. Williams v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1978
- Joyce v. CommissionerUnited States Tax Court · 1964
- Ligon v. CommissionerUnited States Board of Tax Appeals · 1938
2 more not listed; retrieve them via the Exa API.