Fleming v. Commissioner of Internal Revenue

HOLMES, Circuit Judge.

This petition is for review of a decision of the Tax Court, determining the income tax of petitioner for the year 1940. 4 T. C. 168. The facts were stipulated.

Calvin A. Fleming, with his wife and children, moved to Louisiana from Minnesota in 1910. Shortly thereafter he organized a corporation, acquiring its capital stock with cash that had been earned by him in Minnesota. His wife died in 1932, at which time 87 shares of said stock were held by Fleming and 54 shares, in varying numbers, by their children. In 1937 another corporation was organized to acquire, and it did…