Court Opinion

ID: 9639016
Source: CourtListenerOpinion
Date Created: 2023-08-22 16:01:33.127638+00
Date Added: 2024-06-11T18:05:01.870514
License: Public Domain

FRANK, Circuit Judge
(concurring).
As I said in concurring in Aviation Capital v. Pedrick, 148 F.2d 165, 168 (C.C.A.2), I think it irrational ever to consider “treasury stock” as a capital asset in these tax cases. See L. Hand, J., in E. R. Squibb & Sons v. Helvering, 98 F.2d, 69 (C.C.A.2) and his dissenting opinion in Commissioner v. Air Reduction Co., 130 F.2d, 146 (C.C.A.2). But that doctrine is now accepted in this circuit. The situation, then, to my mind, is like that in a farce: An untenable premise, once adopted, is to be carried out logically. . On that basis, a gift to a corporation of stock which becomes one of its capital assets is the same as a gift to it of any other property, so 'that a profit on its sale by the corporation is a taxable gain.