Smith v. Commissioner
United States Board of Tax Appeals
1. The acquisition of its stock by a corporation from petitioner constituted a purchase of such stock and not a distribution by the corporation in partial liquidation. Northern Trust Co., Trustee,20 B.T.A. 866; affd. sub nom.
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1. The acquisition of its stock by a corporation from petitioner constituted a purchase of such stock and not a distribution by the corporation in partial liquidation. Northern Trust Co., Trustee,20 B.T.A. 866; affd. sub nom. Phelps v. Commissioner, 54 Fed.(2d) 289, distinguished. 2. Since such stock had been held by the petitioner for more than five and less than ten years, only 40 percent of the realized gain is recognized for tax purposes under the Revenue Act of 1934, section 117.
1Opinion of the Court
*319OPINION.
Leech:
The sole question for consideration is whether the transaction, upon which the disputed tax arises, was a sale of stock to the corporation or a distribution in partial liquidation by the corporation to the petitioner. If it was a sale, only 40 percent of the *320gain therefrom is taxable to petitioner under the provisions of section 117 of the Bevenue Act of 1934. If it constituted a distribution by the company in partial liquidation, the entire.gain is taxable to the petitioner under the provisions of section 115 (c) of the same revenue act.
Obviously, the transaction purported to…
2Cases cited1 opinion
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
3Cited by12 opinions
- Amelia H. Cohen Trust v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1941
- Alpers v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1942
- Bassett v. CommissionerUnited States Tax Court · 1961
- Stern v. HarrisonDistrict Court, N.D. Illinois · 1944
- Alpers v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1942
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