Shaffer v. Commissioner
United States Board of Tax Appeals
1. The sale by the petitioner of common stock and bonds of a corporation for cash and preferred stock of the same corporation, thereafter to be authorized and issued to the purchaser, or of its successor if such successor were organized, neither the corporation nor its successor being parties to the transaction, was not an exchange in pursuance of a plan of reorganization, within the meaning of section 203(b)(2) and (f) of the Revenue Act of 1924, and the loss sustained upon…
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1. The sale by the petitioner of common stock and bonds of a corporation for cash and preferred stock of the same corporation, thereafter to be authorized and issued to the purchaser, or of its successor if such successor were organized, neither the corporation nor its successor being parties to the transaction, was not an exchange in pursuance of a plan of reorganization, within the meaning of section 203(b)(2) and (f) of the Revenue Act of 1924, and the loss sustained upon the sale of the securities is to be recognized, under section 203(a), in computing taxable net income. 2. Held, that,…
1Opinion of the Court
*1304OPINION.
I
Arundell :
The petitioner contends that he sustained a deductible loss of $344,882.62 in 1924 upon the disposition of his interest in the Louisville Herald Co. to Brown; that, as a result of that loss, he sustained a statutory net loss for 1924, within the meaning of section 206 (e) of the Bevenue Act of 1926, which is deductible in computing net income for 1925; that he sustained a further loss in 1925, in connection with the disposition, by reason of his payment of $2,850 to Badger and Gorham in settlement of the suit against the Louisville Herald Co., which loss is properly…
2Cases cited7 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
- Burnet v. ClarkSupreme Court of the United States · 1932
- Weiss v. WeinerSupreme Court of the United States · 1929
- Watson v. CommissionerUnited States Board of Tax Appeals · 1932
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3Cited by1 opinion
- Shaffer v. CommissionerUnited States Board of Tax Appeals · 1933