Bancker v. Commissioner of Internal Revenue

SIBLEY, Circuit Judge.

F2vert A. Bancker in the year 1930 owned 1,600 shares of common stock of the Coca-Cola Company, and 1,286 shares of its “Class A” preferred stock, which he exchanged with another individual for 800 shares of common stock and 643 shares of “Class A” preferred stock in Coca-Cola International Corporation. The market value of the shares he acquired being much greater than the amount he had originally invested, the Commissioner held that a taxable gain had been realized by the exchange, and assessed a tax accordingly, which the Board of Tax Appeals sustained. The contention…