Collins v. Commissioner
United States Board of Tax Appeals
In 1929 the decedent purchased in the State of Minnesota certain bank stock from the National City Co. of New York. In 1930 and 1931 he sold the stock for less than its purchase price and in his returns for those years claimed deductions for the losses so sustained. The returns for the said years would have disclosed net losses even if the deductions in respect of the above stock sales had not been claimed.
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In 1929 the decedent purchased in the State of Minnesota certain bank stock from the National City Co. of New York. In 1930 and 1931 he sold the stock for less than its purchase price and in his returns for those years claimed deductions for the losses so sustained. The returns for the said years would have disclosed net losses even if the deductions in respect of the above stock sales had not been claimed. In 1936 decedent learned that the bank stock had not been registered in accordance with the Minnesota Blue Sky Laws and in 1937 filed suit against the company for rescission of the…
1Opinion of the Court
OPINION.
Turner:
The respondent determined a deficiency in income tax for 1939 in the amount of $2,331.04. The issue is whether a sum of money recovered by the decedent in the taxable year as a result of litigation involving certain stock transactions in prior years constitutes a return of capital, as contended by petitioner, or taxable income, as contended by the respondent. The parties have filed a written stipulation of facts, with certain exhibits attached thereto, and the *766Board adopts such stipulation as its findings of fact. We shall recite only the facts deemed necessary to the…
2Cases cited2 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- United States v. United Shoe Machinery Co. of New JerseySupreme Court of the United States · 1917
3Cited by16 opinions
- Boehm v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1945
- Harwick v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1943
- Ridge Realization Corp. v. CommissionerUnited States Tax Court · 1966
- Electric Storage Battery Co. v. RothensiesDistrict Court, E.D. Pennsylvania · 1944
- Madison Fund, Inc. (Formerly the Pennroad Corporation) v. Commissioner of Internal Revenue (Two Cases)Court of Appeals for the Third Circuit · 1966
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