Helvering v. Salvage Salvage v. Helvering, Nos. 173 and 280

CourtUnited States Supreme Court
Writing for the CourtMcREYNOLDS
Citation297 U.S. 106,56 S.Ct. 375,80 L.Ed. 511
PartiesHELVERING, Commissioner of Internal Revenue, v. SALVAGE. SALVAGE v. HELVERING, Commissioner of Internal Revenue
Decision Date13 January 1936
Docket NumberNos. 173 and 280

297 U.S. 106
56 S.Ct. 375
80 L.Ed. 511
HELVERING, Commissioner of Internal Revenue,

v.

SALVAGE. SALVAGE v. HELVERING, Commissioner of Internal Revenue.

Nos. 173 and 280.
Argued Dec. 20, 1935.
Decided Jan. 13, 1936.

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,

Page 108

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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128 practice notes
  • Ross v. Commissioner of Internal Revenue, No. 4281.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (1st Circuit)
    • July 13, 1948
    ...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......
  • Morsman v. Commissioner of Internal Revenue, No. 10621.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (8th Circuit)
    • May 21, 1937
    ...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......
  • Gaylord v. Commissioner of Internal Revenue, No. 10936.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • January 30, 1946
    ...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
    • United States
    • United States District Courts. 3th Circuit. United States District Court (Delaware)
    • November 2, 1955
    ...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......
  • Request a trial to view additional results
128 cases
  • Ross v. Commissioner of Internal Revenue, No. 4281.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (1st Circuit)
    • July 13, 1948
    ...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.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (8th Circuit)
    • May 21, 1937
    ...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.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • January 30, 1946
    ...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
    • United States
    • United States District Courts. 3th Circuit. United States District Court (Delaware)
    • November 2, 1955
    ...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......
  • Request a trial to view additional results

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