Buck v. Commissioner
United States Board of Tax Appeals
1. Petitioner, having included in gross income the entire proceeds from sale of stock subscription rights, is not estopped from correcting method of reporting the transaction by ascertaining cost of the rights and computing profit or loss on sale thereof in accordance with article 58 of Regulations 77, Revenue Act of 1932. Only so much of proceeds of sale as represents realized profit above cost constitutes taxable income, sec. 111(a), Revenue Act of 1932; Miles v. Safe…
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1. Petitioner, having included in gross income the entire proceeds from sale of stock subscription rights, is not estopped from correcting method of reporting the transaction by ascertaining cost of the rights and computing profit or loss on sale thereof in accordance with article 58 of Regulations 77, Revenue Act of 1932. Only so much of proceeds of sale as represents realized profit above cost constitutes taxable income, sec. 111(a), Revenue Act of 1932; Miles v. Safe Deposit & Trust Co. of Baltimore,259 U.S. 247, and if loss is sustained, deduction for loss is allowable. 2. The part of…
1Opinion of the Court
OPINION.
Harkon :
The Commissioner determined a deficiency in petitioner’s income tax for the year 1933 in the amount of $1,170.42. In his income tax return the petitioner reported as income the entire proceeds from the sale, in 1933, of rights to subscribe to additional common stock of the American Commercial Alcohol Corporation, which treatment he thereafter claimed was error in protests addressed to the Commissioner and in the petition to this Board. The Commissioner, in determining the deficiency, refused to allow petitioner to correct the purported error by applying a method provided in…
2Cases cited3 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Miles v. Safe Deposit & Trust Co. of BaltimoreSupreme Court of the United States · 1922
- Morrill v. JonesSupreme Court of the United States · 1883
3Cited by3 opinions
- Armco, Inc. v. CommissionerUnited States Tax Court · 1987
- Armco, Inc. v. CommissionerUnited States Tax Court · 1987
- Buck v. CommissionerUnited States Board of Tax Appeals · 1939