Ayer v. Commissioner
United States Board of Tax Appeals
1. The original cost of stock is not necessarily the basis for determining profit or loss upon a sale. 2. Where the Commissioner determined that the original cost of stock had been reduced by the exercise of stockholder's rights to subscribe to additional stock, which rights arose out of the ownership of such original stock, held, that petitioner has not established the computation to be incorrect by showing only the original cost of the stock.
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1. The original cost of stock is not necessarily the basis for determining profit or loss upon a sale. 2. Where the Commissioner determined that the original cost of stock had been reduced by the exercise of stockholder's rights to subscribe to additional stock, which rights arose out of the ownership of such original stock, held, that petitioner has not established the computation to be incorrect by showing only the original cost of the stock. Miles v. Safe Deposit & Trust Co.,259 U.S. 247.
1Opinion of the Court
*153OPINION.
Phillips:
Upon the hearing counsel for the parties submitted in evidence the Bureau letter setting out the basis for the computation of the deficiency. The petitioner proved the sales price, the numbers of the certificates delivered, and the original cost of 300 shares evidenced by the certificates of stock which were delivered upon the sale and rested. The Commissioner then called to the stand the two witnesses who had testified on behalf of the petitioner and also counsel for the petitioner. Their testimony was to the effect that they did not know whether or not any rights to…
2Cases cited1 opinion
- Miles v. Safe Deposit & Trust Co. of BaltimoreSupreme Court of the United States · 1922
3Cited by4 opinions
- Standard Fuel & Material Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Ayer v. CommissionerUnited States Board of Tax Appeals · 1927
- Commonwealth Improv. Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Rogers v. CommissionerUnited States Board of Tax Appeals · 1935