Faris v. Commissioner
United States Board of Tax Appeals
1. Payment of $100,000 made to petitioner by a corporation in virtue of his ownership of its capital stock held to be a taxable dividend and not a distribution of capital. 2. Under the facts the petitioner's taxable gain on stock sold in the taxable year is determinable under section 204(a)(6) of the Revenue Act of 1924, by using the cost of the assets exchanged by him for the stock, and not its par value when received. Newman, Saunders & Co. v. United States,281 U.S. 760.
1Opinion of the Court
*498OPINION.
Lansdon :
In respect to the first issue which relates to petitioner’s tax for 1923, we have held contrary to the contention here urged by him upon the identical facts in the companion case of B. M. Walker, 26 B. T. A. 494, decided this day. Consistent with that opinion we now hold against the petitioner on that issue in this case.
Kesjiecting the second issue, the petitioner argues that the basis for determining the cost to him of the 10,002 shares of stock in the Faris-Walker Corporation, which he sold in 1924, should be the value of the assets exchanged for such stock at the time the…
2Cited by1 opinion
- Faris v. CommissionerUnited States Board of Tax Appeals · 1932