Bancitaly Corp. v. Commissioner
United States Board of Tax Appeals
1. In the situation here obtaining, where stock was acquired en bloc and subsequently sold in lots or parcels, gain or loss will be computed separately on each sale and not deferred until the entire cost of the stock is recovered. 2. In a nontaxable transaction petitioner exchanged stock in various corporations and cash for stock and stock subscription warrants in other corporations and thereafter exchanged the subscription scription warrants and cash for additional shares.
Read the full summary
1. In the situation here obtaining, where stock was acquired en bloc and subsequently sold in lots or parcels, gain or loss will be computed separately on each sale and not deferred until the entire cost of the stock is recovered. 2. In a nontaxable transaction petitioner exchanged stock in various corporations and cash for stock and stock subscription warrants in other corporations and thereafter exchanged the subscription scription warrants and cash for additional shares. Held, upon the sale of new shares the cost of the securities received in exchange should be apportioned between the new…
1Opinion of the Court
OPINION.
Van Fossan :
Respondent determined a deficiency of $3,669,809.32 in the 1928 income tax of Bancitaly Corporation and, on June 13, 1931, made a jeopardy assessment thereof under section 273 (a) of the Revenue Act of 1928. Against each of the other seven petitioners he is asserting transferee liability for that deficiency. The petitions set forth three assignments of error, two of which, one relating to foreign taxes paid by petitioner and the other to profit on short sales, have been settled by stipulations which will be given effect in the recomputation under Rule 50. The remaining…
2Cases cited3 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Burnet v. LoganSupreme Court of the United States · 1931
- Weiss v. StearnSupreme Court of the United States · 1924
3Cited by7 opinions
- Heiner v. MellonSupreme Court of the United States · 1938
- Principal Life Insurance Company and Subsidiaries v. United StatesUnited States Court of Federal Claims · 2014
- Davis v. CommissionerUnited States Tax Court · 1965
- Branum Et Ux. v. CampbellCourt of Appeals for the Fifth Circuit · 1954
- Metropolitan Commercial Corp. v. CommissionerUnited States Tax Court · 1963
2 more not listed; retrieve them via the Exa API.