Young v. Commissioner
United States Board of Tax Appeals
1. The profit from the exchange of a lease and interest in mining claims received for services, which lease and interest had no market value at the time acquired, for the stock of a corporation is the amount of the fair market value of the stock received in exchange. 2. The surrender of an interest in certain mining claims for a working agreement or an interest in other claims is a completed transaction, and the gain derived from the exchange of the interest so acquired for…
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1. The profit from the exchange of a lease and interest in mining claims received for services, which lease and interest had no market value at the time acquired, for the stock of a corporation is the amount of the fair market value of the stock received in exchange. 2. The surrender of an interest in certain mining claims for a working agreement or an interest in other claims is a completed transaction, and the gain derived from the exchange of the interest so acquired for stock is the difference between the market value thereof when acquired and the market value of the stock received in…
1Opinion of the Court
*488OPINION.
Trammell :
The first issue involved is the amount of profit, if any, realized by Curtis from the exchange of a lease on a certain placer mining claim and his interest in certain other placer mining claims for stock of the New York Oil Co.
We have held that the question whether the receipt of property as compensation for services results in taxable gain at the time received is dependent on the fact whether such property has a market value at that time. If it has no market value when received, no taxable gain results from its receipt. Appeal of William J. Gonlin, 1 B. T. A. 472; Appeal of…
2Cases cited5 opinions
- United States v. Midwest Oil Co.Supreme Court of the United States · 1915
- Pacific National Bank v. EatonSupreme Court of the United States · 1891
- Lipscomb's Adm'r v. CondonWest Virginia Supreme Court · 1904
- Field v. PierceMassachusetts Supreme Judicial Court · 1869
- Bartles v. DoddWest Virginia Supreme Court · 1904
3Cited by10 opinions
- Commissioner of Internal Revenue v. ScatenaCourt of Appeals for the Ninth Circuit · 1936
- Byrne v. CommissionerUnited States Tax Court · 1970
- Vern Realty, Inc. v. CommissionerUnited States Tax Court · 1972
- Helvering v. KaufmannCourt of Appeals for the Fourth Circuit · 1943
- Prescott v. CommissionerCourt of Appeals for the Fifth Circuit · 1935
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