Fisher v. Commissioner
United States Board of Tax Appeals
1. A transaction purporting to be a sale of stock with an option to buy back held, under all the circumstances, not to be a loan but a sale, the gain being taxable. 2. Loss on similar sales held not deductible because of option to repurchase. 3. Basis for percentage limitation of deduction for charitable contributions held to include capital gain. 4. Negligent omission of items from income not relieved from statutory penalty even though return was prepared by taxpayer's…
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1. A transaction purporting to be a sale of stock with an option to buy back held, under all the circumstances, not to be a loan but a sale, the gain being taxable. 2. Loss on similar sales held not deductible because of option to repurchase. 3. Basis for percentage limitation of deduction for charitable contributions held to include capital gain. 4. Negligent omission of items from income not relieved from statutory penalty even though return was prepared by taxpayer's secretary and executed by taxpayer without detailed examination.
1Opinion of the Court
*439OPINION.
Sternhagen :
1. The respondent treated the transactions between the petitioner and Jennings and each of the others as sales of shares, and the prices received as including taxable gain to the extent that they exceeded the proper basis of cost or March 1, 1913, value. The petitioner’s attack centers upon the contention that the transactions were not sales by him, but were loans to him of the amounts received and that the transfers by him of the shares were merely by way of collateral security for such loans. If they were loans to him they were plainly not income. But the burden to…
2Cases cited9 opinions
- Russell v. SouthardSupreme Court of the United States · 1851
- In re Grand Union Co.Court of Appeals for the Second Circuit · 1914
- Houghton v. BurdenSupreme Court of the United States · 1913
- Wallace. v. JohnstoneSupreme Court of the United States · 1889
- Guilford-Chester Water Co. v. Town of GuilfordSupreme Court of Connecticut · 1928
4 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- United States v. ReganDistrict Court, S.D. New York · 1989
- Calloway v. CommissionerUnited States Tax Court · 2010
- Calloway v. CommissionerUnited States Tax Court · 2010
- Fisher v. CommissionerUnited States Board of Tax Appeals · 1934