Marshall v. Commissioner
United States Tax Court
Amounts received by former shareholder for transfer of stock pursuant to agreement requiring surrender of all stock holdings upon retirement from active employment held, on facts, proceeds of sale of capital assets so as to permit full recovery of basis prior to taxation of any further receipts as capital gains, even though sale price was measured by contingent future dividends. Burnet v. Logan, 283 U.S. 404, followed.
1Opinion of the Court
OPINION.
Opper, Judge:
When the petitioner sold his stock in Johnson & Higgins as he was required to do by his underlying contract, measurement of the purchase price according to the size of the dividends to be declared for a specific future period seems to us to have been merely fortuitous. Petitioner parted with his stock in all respects as completely as though he had sold it on any other terms; what he was receiving was the purchase price and not dividends on stock, and the transaction would have been no different if the purchase price had been a specified amount in lieu of being indefinite.…
2Cases cited4 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- McAllister v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1946
- Bell's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1943
- Nordberg Mfg. Co. v. KuhlCourt of Appeals for the Seventh Circuit · 1948
3Cited by1 opinion
- Marshall v. CommissionerUnited States Tax Court · 1953