Clarke

The single question submitted is whether the 250 shares of stock received by Mrs. Clarke and her husband, respectively, on April 24, 1923, possessed a readily realizable market value, as that term is defined by the Bevenue Act of 1921 (section 202, subd. c, 42 Stat. 230 ). There is no question as to the intendment of the statute, or regulations pertaining thereto, which, I conceive, contemplates that property, real, personal, or mixed, shall not be subject to income taxes unless on transfer the property received in exchange has a readily realizable market value; and it is invested with such value if it can readily be converted in an amount of cash or its equivalent substantially equal to its fair value (see article 1564, Beg. 62); and it is stated that whether property has a readily realizable market value depends upon the facts and circumstances in each particular ease.

Tested by this rule, I am constrained to hold that there was no evidence that the oil stock could have been readily sold in the market at approximately its par value. No sales were made of the 250 shares allotted to husband and wife, respectively, and consequently there were no gains or profits.’ Indeed, at such…