Forrester v. Commissioner
United States Tax Court
1. Petitioner received certain stock, the consideration in part being his agreement to pay $ 500 per month to his father for life, thereafter to his mother for life.
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1. Petitioner received certain stock, the consideration in part being his agreement to pay $ 500 per month to his father for life, thereafter to his mother for life. Held, the cost basis of the stock was in part the actual amount spent in such payments, and not the cost of an annuity which would have produced the same payments; held, further, that the remainder of the cost basis was represented by face value of an obligation, on open account, assumed by petitioner. 2. On liquidation of a corporation, petitioner as a stockholder, owning one-half of the stock, received from the corporation…
1Opinion of the Court
OPINION.
Disney, Judge:
Most of the issues herein relate to the gain realized or loss sustained by petitioner upon the liquidation in December 1938 of the Forrester Co. In his return for 1938, he reported a loss of $39,597.06, computed as follows, of which one-half was claimed as a deduction:
Receipts_$107, 902, 56
Cost of stock:
150 shares acquired 12/7/22_$94, 530. 90
150 shares acquired 10/22/26- 52, 968. 72
- 147,499.62
Doss_ 39,597.06
The parties agree that the liquidating dividends received by petitioner in cash and other assets had a value of $107,902.56, as reported by petitioner in his…
2Cases cited10 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Tait v. Western Maryland Railway Co.Supreme Court of the United States · 1933
- Bigelow v. Old Dominion Copper Mining & Smelting Co.Supreme Court of the United States · 1912
- Sanger v. UptonSupreme Court of the United States · 1875
- Helvering v. ButterworthSupreme Court of the United States · 1933
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3Cited by22 opinions
- Vaira v. CommissionerUnited States Tax Court · 1969
- Seaboard Commercial Corp. v. CommissionerUnited States Tax Court · 1957
- C.B.C. Super Markets, Inc. v. CommissionerUnited States Tax Court · 1970
- Kaufman's, Inc. v. CommissionerUnited States Tax Court · 1957
- Wolff v. CommissionerUnited States Tax Court · 1946
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