Old Colony Trust Co. v. Commissioner
United States Board of Tax Appeals
The decedent and another individual, being the sole stockholders of X Co., sold to X Co. shares of stock in Y Co. Later, after several transactions in the Y Co. stock by which X Co. bought from and sold to outsiders, the X Co. sold to its stockholders (the decedent and his associate) some of the Y Co. stock it had bought from them and additional shares that it had bought from others.
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The decedent and another individual, being the sole stockholders of X Co., sold to X Co. shares of stock in Y Co. Later, after several transactions in the Y Co. stock by which X Co. bought from and sold to outsiders, the X Co. sold to its stockholders (the decedent and his associate) some of the Y Co. stock it had bought from them and additional shares that it had bought from others. The decedent in this manner purchased 37,500 shares of Y Co. stock from X Co. which he sold shortly thereafter. Held, the sale by the decedent was not a sale of capital assets, since he had held the stock sold…
1Opinion of the Court
OPINION.
Smith :
This proceeding is for the redetermination of a deficiency of $88,463.49 in the decedent’s income tax for 1928. The only issue is whether the sale of certain stock in 1928 was a sale of capital assets. The respondent affirmatively alleges that he erroneously computed the profit upon the sale, subject to normal and surtax, and duly asserts *462claim to any increased deficiency that may result from our redeter-mination. The case has been submitted upon the following stipulation :
1. One Joseph P. Kennedy, having negotiated for the purchase of 40,000 shares of Class-A common stock of a…
2Cases cited3 opinions
- Burnet v. Commonwealth Improvement Co.Supreme Court of the United States · 1932
- Johnson v. CommissionerUnited States Board of Tax Appeals · 1929
- Commonwealth Improv. Co. v. CommissionerUnited States Board of Tax Appeals · 1930
3Cited by1 opinion
- Old Colony Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1933