Blaise v. Commissioner
United States Board of Tax Appeals
STATE RULE OF PROPERTY DETERMINES PERIOD OF OWNERSHIP OF CAPITAL ASSET. - In 1925 petitioner subscribed and paid for 50 shares of capital stock of a California corporation in violation of the terms of a permit of the commissioner of corporations authorizing the issuance of stock only to incorporators. The issuance of stock to petitioner was void under California law.
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STATE RULE OF PROPERTY DETERMINES PERIOD OF OWNERSHIP OF CAPITAL ASSET. - In 1925 petitioner subscribed and paid for 50 shares of capital stock of a California corporation in violation of the terms of a permit of the commissioner of corporations authorizing the issuance of stock only to incorporators. The issuance of stock to petitioner was void under California law. In 1934 a new or amended permit was obtained under which a new certificate for 50 shares of stock was lawfully issued to petitioner. He sustained a loss upon liquidation of the stock in the taxable year 1935. Held, the Board is…
1Opinion of the Court
*1234OPINION.
Hill :
The question in this case is whether petitioner is entitled to deduct from gross income for the taxable year 1935 only 30 percent of the loss sustained by him upon liquidation of 50 shares of the *1235capital stock of H. T. Lockwood, Inc., a California corporation, as contended by respondent, or whether 80 percent of such loss is an allowable deduction under section 117 (a) of the Revenue Act of 1934,1 as contended by petitioner.
There is no controversy as to the amount of the loss sustained by petitioner, nor that the shares of stock constituted a capital asset within the meaning of…
2Cases cited8 opinions
- Poe v. SeabornSupreme Court of the United States · 1930
- Tyler v. United StatesSupreme Court of the United States · 1930
- Hoeper v. Tax Comm'n of Wis.Supreme Court of the United States · 1931
- McFeely v. CommissionerSupreme Court of the United States · 1935
- Warburton v. WhiteSupreme Court of the United States · 1900
3 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Swenson v. CommissionerUnited States Tax Court · 1961
- Blaise v. CommissionerUnited States Board of Tax Appeals · 1940
- Kieselbach v. CommissionerUnited States Board of Tax Appeals · 1941
- Swenson v. CommissionerUnited States Tax Court · 1961