Interlochen Co. v. Commissioner
United States Tax Court
Basis of stock acquired by petitioner from the father of its principal stockholders held, on the facts and in the absence of other evidence, to be the basis determined by respondent, whether acquired by purchase, by contribution to capital, or by gift. James E. Caldwell & Co., 24 T. C. 597, followed.
1Opinion of the Court
OPINION.
OppeR, Judge:
Of the three possible interpretations of petitioner’s acquisition of the Chesnee Mills stock, none succeeds in overthrowing respondent’s determination, as we view the facts. Whether the stock was purchased, was acquired as a gift, or was a contribution to capital, the result must be the same. We accordingly refrain from choosing which description best suits the confused record.
The transaction was purposely given the appearance of a sale. On that assumption petitioner’s basis would be its purchase price of $46,825 which is the amount respondent used in determining the…
2Cases cited4 opinions
- Orange Securities Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- James E. Caldwell & Co. v. CommissionerUnited States Tax Court · 1955
- Fahs v. Florida MacHine & Foundry Co.Court of Appeals for the Fifth Circuit · 1948
- Madeira v. CommissionerCourt of Appeals for the Third Circuit · 1938
3Cited by1 opinion
- Interlochen Co. v. CommissionerUnited States Tax Court · 1955