Palmer v. Commissioner

1. In 1929 the petitioner received rights on shares of stock in two corporations, which he had held for more than two years, entitling him to purchase additional shares of stock in such corporations. He sold the rights and in his income tax return reported the net proceeds as income taxable as capital net gain. Held, that the net proceeds are taxable as capital net gain. 2. In 1929 the petitioner received rights on shares of stock of the American Superpower Corporation entitling him to purchase shares of stock in other corporations owned by the American Superpower Corporation. The rights thus…