Deposit Trust & Sav. Bank v. Commissioner
United States Board of Tax Appeals
1. The decedent acquired 82 shares of stock of Stott & Son, Inc., in 1918 at a cost of $38,592.16. Held, that such cost is the basis to be used in computing gain realized or loss sustained upon the liquidation of the corporation in 1920. 2. On December 31, 1919, the board of directors of Stott & Son, Inc., adopted a resolution "that all of the bills and accounts receivable of the company, as shown by its books December 31, 1919, be paid out to stockholders of record on that…
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1. The decedent acquired 82 shares of stock of Stott & Son, Inc., in 1918 at a cost of $38,592.16. Held, that such cost is the basis to be used in computing gain realized or loss sustained upon the liquidation of the corporation in 1920. 2. On December 31, 1919, the board of directors of Stott & Son, Inc., adopted a resolution "that all of the bills and accounts receivable of the company, as shown by its books December 31, 1919, be paid out to stockholders of record on that date as a dividend on their stock out of corporate earnings and surplus, and that appropriate transfer of such bills and…
1Opinion of the Court
*711OPINION.
Smith:
1. On March 1, 1913, Enoch Stott owned 318 shares of a total of 320 shares of common stock of Stott & Son, Inc. The March 1, 1913, value of each share of stock was $322.62, which was in excess of cost to Enoch Stott. Emma Stott, his wife, owned eight shares of stock of the company at the same date which cost her less than $322.62 per share. In 1918, Enoch Stott sold 82 shares of his common stock to Wells Levens at a price of $35,269.84, the book value thereof. He reacquired the same 82 shares in 1919 at a price of $38,592.16. For the purpose of determining the profit realized by…
2Cases cited2 opinions
- United States v. LudeySupreme Court of the United States · 1927
- Hellmich v. HellmanSupreme Court of the United States · 1928
3Cited by13 opinions
- Millsap v. CommissionerUnited States Tax Court · 1988
- Grant v. CommissionerUnited States Board of Tax Appeals · 1934
- O'Rear v. CommissionerUnited States Board of Tax Appeals · 1933
- Smith Paper Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Holmby Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
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