Davidson v. Commissioner
United States Board of Tax Appeals
As applied to sales through a brokerage account of shares of stock purchased at different times and at different prices the first in, first out rule is not applicable: (a) Where the seller ordered the broker to sell certain specified shares which had been issued to him and put up as collateral for a loan and in completion of the sale the seller delivered to the broker certificates for the identical shares. The certificates delivered to the broker identified the shares sold.
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As applied to sales through a brokerage account of shares of stock purchased at different times and at different prices the first in, first out rule is not applicable: (a) Where the seller ordered the broker to sell certain specified shares which had been issued to him and put up as collateral for a loan and in completion of the sale the seller delivered to the broker certificates for the identical shares. The certificates delivered to the broker identified the shares sold. (b) Where the seller ordered the broker to sell certain specified shares which had not been issued to the seller but…
1Opinion of the Court
*561OPINION.
Smith:
The petitioners contend that the respondent has erroneously applied the first in, first out rule in computing their gains upon the above described sales of stock and that in each of the transactions involved the shares of stock sold were identified by their instructions to the broker to sell certain specified shares.
By amendments to his answers duly filed in each of the proceedings the respondent admits error in applying the first in, first out rule to the 400 shares of the American Gas & Electric Co. stock sold by Edith L. Davidson in 1929 and avers that such shares were…
2Cases cited4 opinions
- Helvering v. RankinSupreme Court of the United States · 1935
- Richardson v. ShawSupreme Court of the United States · 1908
- Gorman v. LittlefieldSupreme Court of the United States · 1913
- Duel v. HollinsSupreme Court of the United States · 1916
3Cited by1 opinion
- Davidson v. CommissionerUnited States Board of Tax Appeals · 1936