Duveen Bros., Inc. v. Commissioner
United States Tax Court
The petitioner, in order to sell a large block of special preferred, 6 per cent, Kress & Co., stock, which was callable at $ 11 per share, agreed to pay to purchasers of the stock the difference between the purchase price and $ 11 per share, plus dividends received between the purchase and the redemption. The stock was purchased at different times in 1943 and 1944 at prices ranging from $ 11.75 to $ 12.50 per share.
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The petitioner, in order to sell a large block of special preferred, 6 per cent, Kress & Co., stock, which was callable at $ 11 per share, agreed to pay to purchasers of the stock the difference between the purchase price and $ 11 per share, plus dividends received between the purchase and the redemption. The stock was purchased at different times in 1943 and 1944 at prices ranging from $ 11.75 to $ 12.50 per share. The stock was called and redeemed in December 1944. The petitioner, under its agreement, paid the purchasers from 50 cents to $ 1.20 per share in December of 1944, in its 1945…
1Opinion of the Court
OPINION.
Harron, Judge:
The question is whether the petitioner sustained an ordinary loss in its fiscal year ended April 30, 1945, under section 23 (f) in the amount of $30,950, the sum paid to purchasers of Kress & Company stock. The respondent has determined that the payment represents a long term capital loss.
The parties have chosen to narrow the issue by the pleadings. No question is presented as to whether the total price per share accrued at the dates of the sales, regardless of the contingencies under the agreement involved.
The petitioner has referred to the agreement as a guaranty, and…
2Cases cited4 opinions
- Dobson v. CommissionerSupreme Court of the United States · 1944
- Megargel v. CommissionerUnited States Tax Court · 1944
- Commissioner of Internal Revenue v. Switlik (Four Cases)Court of Appeals for the Third Circuit · 1950
- Switlik v. CommissionerUnited States Tax Court · 1949
3Cited by14 opinions
- Federal Bulk Carriers, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1977
- Federal Bulk Carriers, Inc. v. CommissionerUnited States Tax Court · 1976
- Central Electric & Gas Co. v. United StatesUnited States Court of Claims · 1958
- Duveen Brothers, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1952
- Nelson v. CommissionerUnited States Tax Court · 1971
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