U.S. Supreme Court
Davidson v. Commissioner, 305 U.S. 44 (1938)
Davidson v. Commissioner
Argued October 14, 1938
Decided November 7, 1938
305 U.S. 44
The taxpayer directed his brokers to sell certain shares bought by him in the then current year, and directed his bank, which held the certificates, to deliver them to the broker. By mistake, the bank delivered and the broker sold other shares of the same stock which the bank held for the taxpayer and which he had bought in an earlier year for a lower price. Held that the taxable gain was properly computed on the basis of the cost of the shares so actually sold, rather than the higher cost of the shares which the taxpayer intended to sell. P. 305 U. S. 45.
94 F.2d 300, affirmed.
CERTIORARI, 304 U.S. 554, to review a judgment affirming an order of the Board of Tax Appeals, 34 B.T.A. 555, which sustained a deficiency income tax assessment.