Todd v. Commissioner of Internal Revenue

DAVIS, Circuit Judge.

On July 17, 1920, the petitioner, whose income tax for the year 1929 is involved here, owned 500 shares of stoek in the Lehigh Coal & Navigation Company. He had acquired the stock in six transactions at a cost of $30,-632.50. The company issued stoek rights in 1928, whereby the petitioner purchased 50 shares of stock for $2,500. On October 28, 1929, he sold the original 500 shares for $74,-865. He still retains the 50 shares acquired by the exercise of his stoek rights.

The petitioner reported in his return for 1929 a gain from the sale of the difference between the…