Oliver v. Commissioner
United States Board of Tax Appeals
Held, the first in, first out rule does not apply to stock received upon an exchange in a reorganization, Christian W. Von Gunten,28 B.T.A. 702, nor to stock received in an exchange of stock for stock of the same corporation which is a nontaxable exchange (sec. 112(b)(2), Revenue Act of 1928), nor to nontaxable exchange in 1923 of stock for stock of the same corporation upon reduction of par value of stock.
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Held, the first in, first out rule does not apply to stock received upon an exchange in a reorganization, Christian W. Von Gunten,28 B.T.A. 702, nor to stock received in an exchange of stock for stock of the same corporation which is a nontaxable exchange (sec. 112(b)(2), Revenue Act of 1928), nor to nontaxable exchange in 1923 of stock for stock of the same corporation upon reduction of par value of stock. The basis of the stock received on all such exchanges should be allocated equally to the shares received. Christian W. Von Gunten, supra.
1Opinion of the Court
*1383OPINION.
Matthews :
The question involved is the basis to be used in computing gain or loss from sales of the stock and rights of the American Radiator & .Standard Sanitary Corporation, which were sold in 1929. The pertinent provisions of the Revenue Act of 1928, which is here applicable, are set forth in the margin.1 The stock and rights *1384sold were acquired in 1929 upon an exchange of Standard Sanitary-stock for stock of the American Radiator & Standard Sanitary Corporation, upon a statutory reorganization. The exchange, therefore, was a nontaxable transaction (sec. 112 (b) (3)) and the basis…
2Cases cited6 opinions
- Stewart v. CommissionerUnited States Board of Tax Appeals · 1929
- Snyder v. CommissionerUnited States Board of Tax Appeals · 1930
- Stryker v. CommissionerUnited States Board of Tax Appeals · 1930
- Von Gunten v. CommissionerUnited States Board of Tax Appeals · 1933
- Mickler Holding Co. v. CommissionerUnited States Board of Tax Appeals · 1933
1 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Fuller v. CommissionerUnited States Board of Tax Appeals · 1934
- Fuller v. CommissionerUnited States Board of Tax Appeals · 1934
- Hudson v. CommissionerUnited States Board of Tax Appeals · 1939
- Oliver v. CommissionerUnited States Board of Tax Appeals · 1934
- Wheeler v. CommissionerUnited States Board of Tax Appeals · 1935