Hayne v. Commissioner
United States Tax Court
1. Assessments on stock, under the circumstances, constitute additional cost of the stock. No proof was made that the stock became worthless in 1948. 2. The decedent suffered an attack which paralyzed the left side of his body and confined him to his bed and room. Later, at the suggestion of the attending physician, an elevator was installed on the outside of the house to make it easier for the decedent to be transported. The elevator did not increase the value of the home.
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1. Assessments on stock, under the circumstances, constitute additional cost of the stock. No proof was made that the stock became worthless in 1948. 2. The decedent suffered an attack which paralyzed the left side of his body and confined him to his bed and room. Later, at the suggestion of the attending physician, an elevator was installed on the outside of the house to make it easier for the decedent to be transported. The elevator did not increase the value of the home. Held, on the facts, that cost of the elevator was a capital expenditure, and assuming that it was not, the amount is not…
1Opinion of the Court
OPINION.
Issue I. Stock Loss, $1,000.
Johnson, Judge:
The general contention of petitioners under this issue is that the stock became worthless in 1948, even though the corporation did not discontinue all of its activities until after the sale of its assets on March 1,1951, after which steps were taken to dissolve. The circumstances must be exceptional to hold in such a situation that the stock ceased to have value in 1948. Bullard v. United States, 146 F. 2d 386.
The corporation had operating losses in 1947 and 1948. But financial difficulties, even of a serious nature, do not establish…
2Cases cited11 opinions
- Havey v. CommissionerUnited States Tax Court · 1949
- Stringham v. CommissionerUnited States Tax Court · 1949
- Anthony P. Miller, Inc. v. CommissionerUnited States Tax Court · 1946
- Difco Laboratories, Inc. v. CommissionerUnited States Tax Court · 1948
- Chicago & NWR Co. v. Commissioner of Internal Rev.Court of Appeals for the Seventh Circuit · 1940
6 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Haines v. CommissionerUnited States Tax Court · 1979
- Edna G. Hollander v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1955
- John Riach and Maude M. Riach, His Wife v. William E. Frank, District Director of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Ihrig v. CommissionerUnited States Tax Court · 1956
- Bear Valley Mutual Water Company v. RiddellDistrict Court, C.D. California · 1968
16 more not listed; retrieve them via the Exa API.