Wood v. Commissioner
United States Board of Tax Appeals
1. Shares of stock purchased within two years of the date of sale thereof, although purchased under rights to subscribe received on stock held more than two years, are not "capital assets" within section 101(c)(8) of the Revenue Act of 1928. 2. A stock dividend received on stock purchased under rights to subscribe in the same year such stock dividend was sold is not a capital asset within section 101(c)(8)(C) of the Revenue Act of 1928. 3. In computing allowance for…
Read the full summary
1. Shares of stock purchased within two years of the date of sale thereof, although purchased under rights to subscribe received on stock held more than two years, are not "capital assets" within section 101(c)(8) of the Revenue Act of 1928. 2. A stock dividend received on stock purchased under rights to subscribe in the same year such stock dividend was sold is not a capital asset within section 101(c)(8)(C) of the Revenue Act of 1928. 3. In computing allowance for deduction for contributions under section 23(n) of the Revenue Act of 1928, "capital net gain" as computed under section 101 of…
1Opinion of the Court
*1052OPINION.
McMahon :
The petitioner contends that where corporate stock is obtained through the exercise of stock rights by one who has received the rights on shares of the same stock already held, the date to be taken for the purpose of computing the two-year period under section 101 of the Revenue Act of 1928 is the date of acquisition of the parent stock, and not the date when the rights were exercised.
The pertinent provisions of section 101 of the Revenue Act of 1928 are set forth in the margin.1
The same question was considered by the Board in Rodman E. Griscom, 22 B.T.A. 979, wherein the…
2Cases cited5 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Miles v. Safe Deposit & Trust Co. of BaltimoreSupreme Court of the United States · 1922
- Griscom v. CommissionerUnited States Board of Tax Appeals · 1931
- Straus v. CommissionerUnited States Board of Tax Appeals · 1933
- Bullock v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by3 opinions
- Insull v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1937
- Rogers v. CommissionerUnited States Board of Tax Appeals · 1935
- Wood v. CommissionerUnited States Board of Tax Appeals · 1934