Allington v. Commissioner
United States Board of Tax Appeals
1. Where a corporation in liquidation distributes part of its assets pro rata in cancellation of a fixed percentage of its total outstanding stock, a stockholder claiming error in taxing the gain to him under the first in, first out rule, art. 58, Regulations 74, has the burden of producing evidence showing the identity of the shares canceled. 2. Where a stockholder, in such liquidation, surrenders certificates for separate lots of stock purchased at different times and at…
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1. Where a corporation in liquidation distributes part of its assets pro rata in cancellation of a fixed percentage of its total outstanding stock, a stockholder claiming error in taxing the gain to him under the first in, first out rule, art. 58, Regulations 74, has the burden of producing evidence showing the identity of the shares canceled. 2. Where a stockholder, in such liquidation, surrenders certificates for separate lots of stock purchased at different times and at different prices, and receives an initial liquidating dividend and new certificates for a fixed percentage of all the…
1Opinion of the Court
*423OPINION.
MtjRdock :
The Commissioner early established the rule that “ when shares of stock in a corporation are sold from lots purchased at different-dates and at different prices and the identity of the lots can not be determined, the stock sold shall be charged against the earliest purchases of such stock.” Art. 58, Regulations 74; Towne v. McElligott, 274 Fed. 960. Section 115(c) of the Revenue Act of 1928 provides that amounts distributed in partial liqúidation of a corporation shall be treated as in part or full payment in exchang'd for the stock and the gain shall be determined under…
2Cases cited1 opinion
- Towne v. McElligottDistrict Court, S.D. New York · 1921
3Cited by3 opinions
- Allington v. CommissionerUnited States Board of Tax Appeals · 1934
- Kelly v. CommissionerUnited States Board of Tax Appeals · 1937
- Vawter v. CommissionerUnited States Board of Tax Appeals · 1934