James G. Schaefer v. Russell A. Welch, District Director of Internal Revenue

STEWART, Circuit Judge.

The facts in this, tax case are undisput-^ ed and, except in-broad outline, unimpor-. tant. The amount of money involved is.trivial. Only one question is presented, for decision. The question, however, is a new one: Under the Internal Revenue Code of 1939 was a liquidating distribution, paid by a corporation out of- appreciation in the value of its property which accrued before March 1, 1913,; wholly exempt from income taxation,^ when received by the shareholders? ;

The appellant, was a stockholder in a > New York cemetery corporation, The Evergreens. The ten shares…