Central Hanover Bank & Trust Co. v. United States

LITTLETON, Judge.

During 1920 plaintiff, as trustee, purchased in the open market at a cost of $637,515.74 certain First Liberty Loan *542bonds of the par value of $687,000. The purchase price represented the then market value of the bonds. In 1931 these bonds were sold for $698,791.27, resulting in a profit of $61,275.53 from the purchase and sale. This profit was reported in the income-tax return filed for 1931 and an income tax computed thereon in accordance with the Revenue Act then in force was paid. The act of April '24, 1917, 40 S'tat. 35, authorizing the issuance of these bonds provided in…