Helvering v. Salvage Salvage v. Helvering, Nos. 173 and 280
| Court | United States Supreme Court |
| Writing for the Court | McREYNOLDS |
| Citation | 297 U.S. 106,56 S.Ct. 375,80 L.Ed. 511 |
| Parties | HELVERING, Commissioner of Internal Revenue, v. SALVAGE. SALVAGE v. HELVERING, Commissioner of Internal Revenue |
| Decision Date | 13 January 1936 |
| Docket Number | Nos. 173 and 280 |
v.
SALVAGE. SALVAGE v. HELVERING, Commissioner of Internal Revenue.
Messrs. Homer S. Cummings, Atty. Gen., and Golden W. Bell, Asst. Sol. Gen., of Washington, D.C., for Helvering.
Mr. John G. Jackson, of New York City, for Salvage.
Page 107
Mr. Justice McREYNOLDS delivered the opinion of the Court.
These cross-writs bring up a judgment of the Circuit Court of Appeals, Second Circuit, which disapproved a deficiency assessment for 1929 income, and authorized recovery for overpayment below the taxpayer's claim.
The petition for certiorari in No. 173 asserts: 'The question is—Whether the taxpayer is estopped to claim that the difference between the market value of the 1,500 shares as of December 30, 1922 and their cost to him constituted taxable income to him for 1922; and hence that the fair market value of these shares, and not their cost, is the basis to be used in measuring the gain from the disposition of the shares in 1929, no income from the transaction having been reported in 1922.'
The points to be urged in No. 280 are stated thus: 'The Circuit Court of Appeals erred: (1) In holding that the cost base of the preferred stock of American Viscose Corporation redeemed in 1929 was to be arrived at by taking as the fair market value of the Viscose Company stock the sum of $100 per share, insofar as the five-sevenths of said stock which was subject to the option to repurchase was concerned. (2) In making a finding as to the value of said optioned stock.'
Prior to 1922, Salvage, the taxpayer, bought 25 shares Viscose Company stock. He paid $166.66 for each one; for all $4,166.66. In December, 1922, he acquired from the corporation 1,500 shares for which he paid $100 per share ($150,000) and entered into an obligation to refrain from competing business, etc. Also, he agreed that during 1923 the corporation might repurchase five-sevenths of 1,500 shares at par; during 1924, four-sevenths, etc. Intrinsically (when unincumbered) a share of the company stock was then worth $1,164.70.
Later, during 1922, all these shares (1,525) were exchanged for 6,100 preferred shares, redeemable at $110,
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and 7,625 common shares, American Viscose Corporation. The basis of exchange was four preferred and five common shares of new stock for one share of old. The taxpayer's return for 1922 (not...
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Ross v. Commissioner of Internal Revenue, No. 4281.
...nature can now be raised when they have not been affirmatively pleaded or presented before the Tax Court. In Helvering v. Salvage, 1936, 297 U.S. 106, 108, 109, 56 S.Ct. 375, 376, 80 L.Ed. 51, the Supreme Court stated: "Upon these conflicting claims, the Board of Tax Appeals took the m......
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Morsman v. Commissioner of Internal Revenue, No. 10621.
...disclosed by the record made before the Board, but it should not discuss nor pass upon issues not there raised. Helvering v. Salvage, 297 U. S. 106, 56 S.Ct. 375, 80 L.Ed. 511; General Utilities & Operating Co. v. Helvering, 296 U.S. 200, 56 S.Ct. 185, 187, 80 L.Ed. 154; Sunset Scavenge......
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Gaylord v. Commissioner of Internal Revenue, No. 10936.
...v. Com'r, 29 B.T.A. 1208; El Dorado Oil Works v. Com'r, 46 B.T.A. 994. Cf. Helvering v. Brooklyn City R. Co., supra; Helvering v. Salvage, 297 U.S. 106, 56 S.Ct. 375, 80 L.Ed. 511. Estoppel was not pleaded by The second of the two controlling questions raised by taxpayers relates to the bas......
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Speed v. Transamerica Corporation, Civ. A. No. 480
...SEC v. Central-Illinois Securities Corp., 338 U.S. 96, 106-107, 145, 69 S.Ct. 1377, 93 L.Ed. 1836. 20 See also, Helvering v. Salvage, 297 U.S. 106, 109, 56 S.Ct. 375, 80 L.Ed. 511; May v. McGowan, 2 Cir., 194 F.2d 396; Wilson v. Bowers, 2 Cir., 57 F.2d 21 Mr. Hopkinson has been a partner in......
-
Ross v. Commissioner of Internal Revenue, No. 4281.
...nature can now be raised when they have not been affirmatively pleaded or presented before the Tax Court. In Helvering v. Salvage, 1936, 297 U.S. 106, 108, 109, 56 S.Ct. 375, 376, 80 L.Ed. 51, the Supreme Court stated: "Upon these conflicting claims, the Board of Tax Appeals took the matter......
-
Morsman v. Commissioner of Internal Revenue, No. 10621.
...disclosed by the record made before the Board, but it should not discuss nor pass upon issues not there raised. Helvering v. Salvage, 297 U. S. 106, 56 S.Ct. 375, 80 L.Ed. 511; General Utilities & Operating Co. v. Helvering, 296 U.S. 200, 56 S.Ct. 185, 187, 80 L.Ed. 154; Sunset Scavenger Co......
-
Gaylord v. Commissioner of Internal Revenue, No. 10936.
...v. Com'r, 29 B.T.A. 1208; El Dorado Oil Works v. Com'r, 46 B.T.A. 994. Cf. Helvering v. Brooklyn City R. Co., supra; Helvering v. Salvage, 297 U.S. 106, 56 S.Ct. 375, 80 L.Ed. 511. Estoppel was not pleaded by The second of the two controlling questions raised by taxpayers relates to the bas......
-
Speed v. Transamerica Corporation, Civ. A. No. 480
...SEC v. Central-Illinois Securities Corp., 338 U.S. 96, 106-107, 145, 69 S.Ct. 1377, 93 L.Ed. 1836. 20 See also, Helvering v. Salvage, 297 U.S. 106, 109, 56 S.Ct. 375, 80 L.Ed. 511; May v. McGowan, 2 Cir., 194 F.2d 396; Wilson v. Bowers, 2 Cir., 57 F.2d 21 Mr. Hopkinson has been a partner in......