Flynn v. Commissioner
United States Board of Tax Appeals
1. Gain from an exchange of real estate for preferred stock held taxable in the amount of the difference between the basis determined for the real estate to the petitioner and the amount determined to be the fair market value of the preferred stock received in exchange, in the absence of proof of no fair market value or a value less than respondent found. Sales of preferred stock at par value were made to willing buyers on a limited market.
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1. Gain from an exchange of real estate for preferred stock held taxable in the amount of the difference between the basis determined for the real estate to the petitioner and the amount determined to be the fair market value of the preferred stock received in exchange, in the absence of proof of no fair market value or a value less than respondent found. Sales of preferred stock at par value were made to willing buyers on a limited market. Held, sales for par value are evidence that fair market value was the par value. 2. Deduction for loss from the alleged worthlessness of corporate stock…
1Opinion of the Court
*1066OPINION.
HaReon:
The respondent having conceded error as to the 5 percent negligence penalty of $461.04 proposed by him, the two issues remaining in this proceeding are (1) the amount of gain, if any, from the petitioner’s exchange of real estate for preferred stock of the Queen City Realty Co. and (2) whether a loss on W. B. Foshay Co. stock is deductible by the petitioner in 1930, and, if so, in what amount.
Issue (1). The respondent alleged the petitioner received a gain of $45,000 on an exchange of petitioner’s real estate for preferred stock of the Queen City Realty Co., which gain was…
2Cases cited4 opinions
- R. H. Stearns Co. v. United StatesSupreme Court of the United States · 1934
- Klein v. United StatesSupreme Court of the United States · 1931
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- Burnet v. Aluminum Goods Manufacturing Co.Supreme Court of the United States · 1933
3Cited by16 opinions
- Chiu v. CommissionerUnited States Tax Court · 1985
- Tripp v. CommissionerUnited States Tax Court · 1963
- G. E. Employees Securities Corp. v. ManningDistrict Court, D. New Jersey · 1941
- Chiu v. CommissionerUnited States Tax Court · 1985
- Flynn v. CommissionerUnited States Board of Tax Appeals · 1937
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