Eldridge v. Commissioner
United States Board of Tax Appeals
1. The transfer of securities to a corporation in which petitioner A. S. Eldridge owned all the stock except qualifying shares, which were owned by members of his family, Eldridge receiving a credit to his personal account on the corporate books for the current market price, which was less than cost to him, is held to be a bona fide sale and the resultant loss is an allowable deduction. 2. Dividends declared in 1929, the checks for which were mailed on December 31 of that…
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1. The transfer of securities to a corporation in which petitioner A. S. Eldridge owned all the stock except qualifying shares, which were owned by members of his family, Eldridge receiving a credit to his personal account on the corporate books for the current market price, which was less than cost to him, is held to be a bona fide sale and the resultant loss is an allowable deduction. 2. Dividends declared in 1929, the checks for which were mailed on December 31 of that year but not received by petitioner until January 2, 1930 - this being the usual practice of the corporation in paying…
1Opinion of the Court
*1324OPINION.
Arundell:
In their income tax returns for 1929 the petitioners claimed deductions for losses sustained on the sale of Carnation Co. and Fox Theatres stock. The deductions were disallowed by the respondent on the ground that the transfer of those stocks was not a bona fide transaction. The shares of stock were community property and were transferred by the husband, A. S. Eldridge, to a corporation in which he owned all the stock except qualifying shares and they were owned by members of his family. There is no ques*1325tion as to the formality of tbe transfer. The certificates were delivered…
2Cases cited7 opinions
- Burnet v. ClarkSupreme Court of the United States · 1932
- Burnet v. Commonwealth Improvement Co.Supreme Court of the United States · 1932
- Dalton v. BowersSupreme Court of the United States · 1932
- Avery v. CommissionerSupreme Court of the United States · 1934
- Klein v. Board of Tax Supervisors of Jefferson Cty.Supreme Court of the United States · 1930
2 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Hughes v. CommissionerUnited States Tax Court · 1964
- Commissioner of Internal Revenue v. Maurice FoxCourt of Appeals for the Third Circuit · 1954
- Eldridge v. CommissionerUnited States Board of Tax Appeals · 1934
- Franklin v. CommissionerUnited States Board of Tax Appeals · 1936
- Hardwick v. CommissionerUnited States Board of Tax Appeals · 1935
3 more not listed; retrieve them via the Exa API.