McDonald v. Commissioner
United States Board of Tax Appeals
A taxpayer acquired stock from his daughter-in-law. He paid her more than the stock was worth at the time in order to help her out of financial difficulties. Later he sold the stock for less than he had paid for it and for less than it was worth at the time he acquired it. The Commissioner allowed him a deduction representing the difference between the amount received for the stock and the fair market value of the stock at the time it was acquired.
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A taxpayer acquired stock from his daughter-in-law. He paid her more than the stock was worth at the time in order to help her out of financial difficulties. Later he sold the stock for less than he had paid for it and for less than it was worth at the time he acquired it. The Commissioner allowed him a deduction representing the difference between the amount received for the stock and the fair market value of the stock at the time it was acquired. The taxpayer was not entitled to any greater deduction.
1Opinion of the Court
*66OPINION.
Murdock :
A jurisdictional question was suggested by the Board Member at the hearing and the parties were requested to. up by proof of all pertinent facts. The petitioner had been the sole administrator of his father’s estate but had been discharged before receiving the notice of deficiency. The question was whether he had ever notified the Commissioner of the termination of his fiduciary capacity. See section 281 (a) of the Be venue Act of 1926. The notice of deficiency would indicate that he had not and counsel for the respondent said there was nothing in his files to indicate that…
2Cases cited1 opinion
- Smith v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by14 opinions
- Vaira v. CommissionerUnited States Tax Court · 1969
- Solitron Devices, Inc. v. CommissionerUnited States Tax Court · 1983
- Jordan v. CommissionerUnited States Tax Court · 1973
- Pennsylvania Indemnity Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Hayutin v. CommissionerUnited States Tax Court · 1972
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