Bonham v. Commissioner
United States Board of Tax Appeals
1. The petitioner, owning the majority of stock in a banking corporation, transferred the stock to a second corporation for cash and stock of the latter. Held, that the provisions of section 112(c)(1) of the Revenue Act of 1928 are applicable and the gain from the transaction is recognized, but only in an amount which does not exceed the cash payment. 2. The petitioner acquired by inheritance a portion of the bank stock so transferred.
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1. The petitioner, owning the majority of stock in a banking corporation, transferred the stock to a second corporation for cash and stock of the latter. Held, that the provisions of section 112(c)(1) of the Revenue Act of 1928 are applicable and the gain from the transaction is recognized, but only in an amount which does not exceed the cash payment. 2. The petitioner acquired by inheritance a portion of the bank stock so transferred. The fair market value of the stock, on the date acquired, determined. 3. The fair market value of the stock received in exchange, as of the date of such…
1Opinion of the Court
LUTHER BONHAM, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Bonham v. Commissioner
Docket No. 66799.
United States Board of Tax Appeals
33 B.T.A. 1100; 1936 BTA LEXIS 778;
February 14, 1936, Promulgated
1. The petitioner, owning the majority of stock in a banking corporation, transferred the stock to a second corporation for cash and stock of the latter. Held, that the provisions of section 112(c)(1) of the Revenue Act of 1928 are applicable and the gain from the transaction is recognized, but only in an amount which does not exceed the cash payment.
2. The petitioner acquired by…
2Cases cited2 opinions
- Bassett v. CommissionerUnited States Board of Tax Appeals · 1935
- Bonham v. CommissionerUnited States Board of Tax Appeals · 1936