Vawter v. Commissioner of Internal Revenue

BRATTON, Circuit Judge.

This petition presents for decision a deficiency assessment of income tax laid against petitioner for the year 1930. Petitioner was an employee of Burroughs Adding Machine Company. He began purchasing capital stock of the company in 1917, and at the beginning of the year 1929 he owned 500 shares which were acquired at different times and prices for investment. In May, 1929, he attended a convention of agents of the company held at Detroit and learned while there that a stock dividend of four shares for one was contemplated. Induced by that information, he purchased 100…