Foster v. Commissioner
United States Tax Court
Decedent, to procure working capital for a corporation in which he owned controlling stock, transferred half his common shares to a person furnishing capital to the corporation, and surrendered 1,848 shares of preferred stock to the corporation, of which 1,048 shares were canceled and 800 were resold to the person furnishing capital.
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Decedent, to procure working capital for a corporation in which he owned controlling stock, transferred half his common shares to a person furnishing capital to the corporation, and surrendered 1,848 shares of preferred stock to the corporation, of which 1,048 shares were canceled and 800 were resold to the person furnishing capital. Decedent sold his remaining common stock in 1940. Held, on the facts, decedent's basis for stock sold in 1940 includes cost of common stock transferred to the other person plus the part of the cost of preferred shares surrendered which was not deductible as a…
1Opinion of the Court
OPINION.
Arnold, Judge:
The sole issue here is the computation, of the basis of stock sold in 1940. The parties are agreed as to part of the computation. They agree as to the basis of the shares owned by Foster on December 6,1922, and as to the effect of some of the subsequent additions or transfers. They do not agree as to the effect of the transactions between Foster and Greenleaf upon the basis. The petitioners contend that there should be added to the basis as otherwise determined the amounts of $218,000 paid by Greenleaf to the corporation for 2,180 shares of common stock transferred to…
2Cited by25 opinions
- Commissioner v. FinkSupreme Court of the United States · 1987
- Downer v. CommissionerUnited States Tax Court · 1967
- Smith v. CommissionerUnited States Tax Court · 1976
- Schleppy v. CommissionerCourt of Appeals for the Fifth Circuit · 1979
- Hayne v. CommissionerUnited States Tax Court · 1954
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