Fischer v. Commissioner

*1007OPINION.

Black:

The question in all of these proceedings is the same, namely, whether the preferred stock received by the petitioners dur*1008ing the taxable year 1936 is taxable to them as a dividend, or whether the receipt by petitioners of the preferred and new common in exchange for the old common was a transaction upon which no gain or loss shall be recognized. If the Board determines that petitioners received the preferred stock and new common stock in a nontaxable reorganization, then the Commissioner concedes that the gains of petitioners on the sale of the stock are taxable as capital gain…