Seelye v. Commissioner
United States Board of Tax Appeals
Where an individual trading on margin deposits with his broker a certificate for a given number of shares of a corporation as additional security, thereafter buys on margin a like number of shares of the same corporation and later sells one half of the shares standing to his credit in the margin account, the basis for the computation of gain or loss upon such sale is the cost of the shares first acquired by the individual even though he instructed his broker to sell the…
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Where an individual trading on margin deposits with his broker a certificate for a given number of shares of a corporation as additional security, thereafter buys on margin a like number of shares of the same corporation and later sells one half of the shares standing to his credit in the margin account, the basis for the computation of gain or loss upon such sale is the cost of the shares first acquired by the individual even though he instructed his broker to sell the shares last acquired.
1Opinion of the Court
*696OPINION.
Smith :
The question in issue in this proceeding is whether the 100 shares of General Electric Co. common stock sold by the petitioner on January 9, 1929, were the 100 shares purchased by him in 1927 at a cost of $9,882.50, or the 100 shares purchased by him on December 10, 1928, for $17,725. The respondent has determined the deficiency upon the basis of article 58 of Regulations 74, which provides, so far as material, as follows:
* * ⅜ when shares of stock in a corporation are sold from lots purchased at different dates and at different prices and the identity of the lots can not be…
2Cases cited4 opinions
- Towne v. McElligottDistrict Court, S.D. New York · 1921
- Hedrick v. CommissionerUnited States Board of Tax Appeals · 1931
- Stryker v. CommissionerUnited States Board of Tax Appeals · 1930
- Turner v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by4 opinions
- Baker v. CommissionerUnited States Board of Tax Appeals · 1934
- Geoghegan v. CommissionerUnited States Board of Tax Appeals · 1934
- Forrester v. CommissionerUnited States Board of Tax Appeals · 1935
- Seelye v. CommissionerUnited States Board of Tax Appeals · 1934