Bradley v. Commissioner
United States Board of Tax Appeals
The transfer in 1919 by a corporation of stock or other property to a stockholder, in common with other stockholders and in proportion to stock held in the corporation, for one-eighth of its value and under other circumstances revealed by the evidence is not a sale in good faith but is a taxable dividend, when received by the stockholder, as defined by section 201(a) of the Revenue Act of 1918, and must be included in his net income subject to surtax for the year in question.
1Opinion of the Court
*115OPINION.
James:
The taxpayer in this case contends that, stripped of all but the essential elements, the series of transactions whereby he acquired 50 shares of the stock of the Delaware Co. represented a mere *116purchase by him of such shares from the Trust Co. for $250. The Commissioner contends that the taxpayer acquired such stock by virtue of participation in the Bankers’ Syndicate, and since the stock was worth $40 per share he thereby realized a gain of the difference between the value of the stock so acquired and the cost of such stock to him.
In our view of the case neither position as…
2Cases cited7 opinions
- Horning v. District of ColumbiaSupreme Court of the United States · 1920
- Mitchell v. Board of Commissioners of Leavenworth County, KansasSupreme Court of the United States · 1876
- Marsh v. . KayeNew York Court of Appeals · 1901
- Holly Springs Savings & Insurance v. Board of SupervisorsMississippi Supreme Court · 1876
- Ransom v. City of BurlingtonSupreme Court of Iowa · 1900
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3Cited by2 opinions
- Ramapo, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1936
- Bradley v. CommissionerUnited States Board of Tax Appeals · 1924