Walker v. Commissioner
United States Board of Tax Appeals
1. Basis of stock received pursuant to a statutory reorganization held determinable by the average method rather than under the first in, first out rule.
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1. Basis of stock received pursuant to a statutory reorganization held determinable by the average method rather than under the first in, first out rule. Christian W. Von Gunten,28 B.T.A. 702, followed. 2. Where, on the final sale of stock received pursuant to statutory reorganization, the unrecovered basis is ascertainable, that amount should be used to determine the amount of gain rather than to determine the amount that should have been used as the basis in prior sales and apply the remainder as the basis on the final sale. 3. Sale of stock on a "when issued" basis takes place in the year…
1Opinion of the Court
*643OPINION.
Guardian Detroit Union Group, Inc., Stock.
ARUNdell:
The only issue on the sale of this block of stock is? whether the basis of the shares sold should be determined by the' average cost method or the application of the first in, first out rule. Petitioner contends for the average cost method as against the respondent’s use of the first in, first out principle.
All of the Union Group shares were acquired by petitioner at the one time, December 30, 1929, pursuant to a statutory reorganization.. The proper method of allocation of the basis of stock received in connection with a…
2Cited by5 opinions
- Stavisky v. CommissionerUnited States Tax Court · 1960
- Hudson v. CommissionerUnited States Board of Tax Appeals · 1939
- Stavisky v. CommissionerUnited States Tax Court · 1960
- Walker v. CommissionerUnited States Board of Tax Appeals · 1937
- Wobber Bros. v. CommissionerUnited States Board of Tax Appeals · 1937