Dorsey Co. v. Commissioner

SIBLEY, Circuit Judge.

The Dorsey Company was held by the Board of Tax Appeals to have realized a gain in the year 1928 by a sale that year to the testamentary trustees of the estate of its recently deceased majority stockholder of a building in the city of Dallas, Tex., which housed its plant. It took a lease back on it. The depreciated cost of the building was $162,000. The consideration recited in the deed was $162,000, and was paid $62,000 in money and $100,000 in 1000 shares of stock of the corporation. The purchasers held much additional stock. The corporation had a capital of $290,000…