Hope v. Commissioner
United States Tax Court
Held: 1. The mere filing of a suit by the seller to rescind the sale of stock did not postpone the realization of taxable gain. 2. Neither the acquisition by the seller of options to purchase a part of the stock sold nor the receipt of the stock on the exercise of the options resulted in a rescission of the sale. 3. The sale did not involve a criminal appropriation of the petitioner's stock. 4. The petitioner did not restore an amount held under a claim of right when he…
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Held: 1. The mere filing of a suit by the seller to rescind the sale of stock did not postpone the realization of taxable gain. 2. Neither the acquisition by the seller of options to purchase a part of the stock sold nor the receipt of the stock on the exercise of the options resulted in a rescission of the sale. 3. The sale did not involve a criminal appropriation of the petitioner's stock. 4. The petitioner did not restore an amount held under a claim of right when he exercised his options. 5. In the absence of a finding of theft or fraud, counsel's fees and other costs incurred by the…
1Opinion of the Court
Quealt, Judge:
Tbe respondent determined deficiencies in petitioners income tax as follows:
Docket No. Taxable year Deficiency
2258-65- 1960 $991,127
3128-69- 1961 108, 750
The deficiencies determined by the respondent in the instant case arose out of the purported sale by Mr. Karl Hope of 206,400 shares of stock of Perfect Photo, Inc., on July 27,1960, and reflect the fact that the respondent took an inconsistent position with respect to the year of accountability for, as well as the amount of, the income realized on the sale.
The respondent conceded at trial that counsel’s fees of $10,000 were…
2Cases cited34 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- United States v. LewisSupreme Court of the United States · 1951
- Edwards v. BrombergCourt of Appeals for the Fifth Circuit · 1956
- Harrison E. Spangler and Myrtle B. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
29 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Church of Scientology v. CommissionerUnited States Tax Court · 1984
- Professional Ins. Agents v. CommissionerUnited States Tax Court · 1982
- Karl and Hilda Hope, in Nos. 71-1993, 71-1994 v. Commissioner of Internal Revenue, in No. 71-1995Court of Appeals for the Third Circuit · 1973
- Nordberg v. CommissionerUnited States Tax Court · 1982
- Pahl v. CommissionerUnited States Tax Court · 1976
35 more not listed; retrieve them via the Exa API.