Ketler v. Commissioner of Internal Revenue

DUFFY, Circuit Judge.

This is a petition to review a decision of the Tax Court which sustained the Commissioner of Internal Revenue in assessing a deficiency of income tax against petitioner for the year 1944. The nub of the controversy is the proper cost basis for 252 shares of F. K. Ketler Company common stock which was acquired by the petitioner as creditor and sole stockholder of Monroe Construction Company upon its liquidation and dissolution in 1941. It is petitioner’s claim that he received said shares in one of a series of transactions amounting to a tax-free reorganization under Sec.…