Walsh v. Brewster, 255 U.S. 536 (1921)

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Walsh v. Brewster


No. 742


Argued March 10, 11, 1921
Decided March 28, 1921
255 U.S. 536

ERROR TO THE DISTRICT COURT OF THE UNITED STATES
FOR THE DISTRICT OF CONNECTICUT

Syllabus

1. Bonds bought as an investment in 1909 were sold in 1916 for the amount originally paid, which was more, however, than their market value on March 1, 1913. Held that there was no taxable income. P. 537. Goodrich v. Edwards, ante,527.

2. Bonds bought in 1902-1903 were sold in 1916 at an increase over the investment price and at a still larger increase over their market value on March 1, 1913. Held that the gain over the investment was the income taxable. P. 538. Goodrich v. Edwards, ante,527.

3. Interest should not be added to the original investment in computing the amount of gain -- income -- upon a sale. P. 538.

4. A stock dividend held not income of the stockholder. P. 538. Eisner v. Macomber, 252 U.S. 189.

268 F. 207 reversed in part and affirmed in part.

The case is stated in the opinion.