Roberts v. Commissioner
United States Board of Tax Appeals
1. Sale of stock in taxable year held to be bona fide and loss thereon deductible in the taxable year. 2. Where an endorser paid a note in installments in the years 1930, 1931, and the taxable year of 1932, an indebtedness of the principal to such endorser arose at the times of the various payments and constituted a bad debt in each instance, deductible only from the gross income of the respective years in which such payments were made.
1Opinion of the Court
*551OPINION.
Tyson :
The respondent contends that the transfer of the 90 shares of Steamship Co. stock was not a bona fide sale made in an arm’s length transaction in good faith, but was instead a mere manipulation of property entered into for the sole purpose of reducing tax liability and to defeat the collection of taxes legally due.
*552It has been stated that “while a sale for tax purposes is not to be disregarded because of its motive, on the other hand a mere gesture, without the vital intent to change ownership is not to be recognized as a sale merely because superficially it resembles one.”…
2Cases cited6 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Del Vecchio v. BowersSupreme Court of the United States · 1935
- Faires v. CockerellTexas Supreme Court · 1895
- Minick v. HuffNebraska Supreme Court · 1894
- Boulware v. RobinsonTexas Supreme Court · 1852
1 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Santa Anita Consol., Inc. v. CommissionerUnited States Tax Court · 1968
- Roberts v. CommissionerUnited States Board of Tax Appeals · 1937
- Santa Anita Consol., Inc. v. CommissionerUnited States Tax Court · 1968
- Shepherd v. CommissionerUnited States Tax Court · 1944
- William B. Cudlip and Lynwood B. Cudlip v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1955
1 more not listed; retrieve them via the Exa API.