Jones v. Commissioner of Internal Revenue

BUFFINGTON, Circuit Judge.

The pertinent facts in this case are that stockholders, who had substantially the same holdings in two affiliated corporations which had the same officials and office employees, joined in selling their stock to other parties for $3,-029,400. This sum was deposited with a trust company for them, and by their consent was paid out by the trust company as follows : $9,822.25 for expenses incident to the sale of the stock; $2,719,517.75, representing the 46,687 shares of the selling stockholders at $58.25 per share, to the stockholders. The residue of $300,000 was…