United States Board of Tax Appeals October 8, 1941, Docket No. 102669. (Malone v. Commissioner)

lead-opinion

*307OPINION.

Kern :

In this case the question is solely whether gain or loss to the stockholder-taxpayer may properly be recognized in the transaction before us. Keduced to its elements, the recapitalization was a surrender of one-half the bank’s capital stock by its stockholders and the receipt by them of $62.50 in cash on each share surrendered.