Fehrs Finance Company, Cross-Appellee v. Commissioner of Internal Revenue, Cross-Appellant

STEPHENSON, Circuit Judge.

The focal point of this controversy concerns the basis attributable to certain stock in the hands of the acquiring corporation in connection with a redemption of stock through the use of related corporations pursuant to 26 U.S.C. §§ 304(a) and 362(a)(2).

Our task is to review the decision of the United States Tax Court 1 wherein, after an extensive examination of the facts and the several sub-issues, the court determined that the basis of the stock in question was zero since the transferors had recognized no gain on the transfer for the tax year in question.

We affirm…