Timberlake v. Commissioner of Internal Revenue

SOPER, Circuit Judge.

This petition for a review of a decision of the Board of Tax Appeals raises the question whether J. E. Timberlake, the taxpayer, received taxable income in 1936, when he purchased from a closely held corporation, of which he was a stockholder, shares of stock in another corporation at less than their fair market value.

Thomas and Howard Company of Columbia, South Carolina, hereinafter called the Columbia Company, bought 775 shares of the stock of Thomas and Howard Company of Charleston, South Carolina, engaged in the wholesale grocery business, hereinafter called the…