Allyne-Zerk Co. v. Commissioner
United States Board of Tax Appeals
Petitioner sold all its assets for cash and a portion of its own stock then outstanding. Held, that it realized taxable gain on the sale to the extent of the difference between cost of the assets and the amount of cash received plus the value of its own stock surrendered.
1Dissent
Van Fossan,
dissenting: I agree with the holding of the majority that the contract in this case was indivisible and that the entire transaction was one on which gain or loss may be predicated. I *1197must dissent however from the conclusion that under the facts in this case the petitioner realized a gain from the surrender for cancellation of a block of its own stock.
The whole theory of income taxation is based on the concept that, where the taxpayer has acquired an increment, a gain, a profit, he should pay a tax thereon. Whereas he formerly had 100 units of value, now he has 100 units plus 10.…
2Cases cited2 opinions
- Houghton & D. Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- S. A. Woods Machine Co. v. CommissionerUnited States Board of Tax Appeals · 1930