Hadley v. Commissioner
United States Tax Court
Petitioner transferred to a corporation a minor portion of the stock which it had issued. A part was transferred for cash prior to any decision by the corporation as to disposition of the stock. Transfer tax stamps were attached. After the transfer the corporation decided to, and did, hold the stock in its treasury for a few days.
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Petitioner transferred to a corporation a minor portion of the stock which it had issued. A part was transferred for cash prior to any decision by the corporation as to disposition of the stock. Transfer tax stamps were attached. After the transfer the corporation decided to, and did, hold the stock in its treasury for a few days. A few days later the officers decided to retire the stock, retirement was approved by the stockholders about two weeks later, and the stock was then retired, a certificate of retirement being filed with the secretary of state. Other stock was later, from time to…
1Opinion of the Court
OPINION.
DisNEY, Judge:
We have here to decide whether the transactions through which the petitioner disposed of the corporate stock here involved constitute a sale resulting in capital gain, taxed according to the time of holding under section 117 of the Revenue Act of 1938, or whether on the other hand such transactions constituted a distribution in partial liquidation under section 115 (c) and (i), Revenue Act of 1938, in which case the entire gain would be taxable. No disagreement appears as to the amount of the gain or as to -the length of time petitioner had held the stock.
On the record…
2Cited by3 opinions
- Stern v. HarrisonDistrict Court, N.D. Illinois · 1944
- Hadley v. CommissionerUnited States Tax Court · 1943
- Markle v. CommissionerUnited States Tax Court · 1946