Kelchner v. Commissioner
United States Board of Tax Appeals
The petitioner in 1930 decided to sell a certain number of shares of corporate stock which she had acquired in 1920. The sale was made through a brokerage firm by her attorney. Thereafter, the attorney mistakenly delivered certificates for shares of the stock acquired on previous dates. The mistake was not discovered until two years later.
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The petitioner in 1930 decided to sell a certain number of shares of corporate stock which she had acquired in 1920. The sale was made through a brokerage firm by her attorney. Thereafter, the attorney mistakenly delivered certificates for shares of the stock acquired on previous dates. The mistake was not discovered until two years later. Held, that the agin or loss upon the sale must be computed upon the basis of the cost of the shares represented by the certificates delivered to the purchaser.
1Opinion of the Court
OPINION.
Smith :
The respondent has determined a deficiency in petitioner’s income tax for 1930 in the amount of $8,692.88. The petitioner alleges that the respondent erred in computing the gain upon the sale-of certain shares of stock. Briefly stated, the facts, over which there is no serious dispute, and the question in issue are as follows:
The petitioner in 1930 was the owner of 3,200 shares of stock of the Delaware, Lackawanna & Western Railroad Co. She had acquired 1,600 of such shares from her husband’s estate on December 31, 1929, and the other' 1,600 shares at different dates previous…
2Cases cited3 opinions
- Mickler Holding Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Horner v. CommissionerUnited States Board of Tax Appeals · 1933
- Neville v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by1 opinion
- Kelchner v. CommissionerUnited States Board of Tax Appeals · 1934