Wilgard Realty Co. v. Commissioner of Internal Rev.

CHASE, Circuit Judge.

The controversy is over the basis the petitioner is entitled to use in determining its gain or loss for income tax purposes on the sale of some real estate it made in 1937. It had acquired this property in 1932 from an individual who had organized the petitioner for the purpose of transferring the property to it in exchange for what amounted to all of its stock together-with its assumption of the transferor’s liability on a debt secured by two mortgages on the real estate. The transferor intended when the transfer was made to give away about three-fourths of the stock he…