Belridge Oil Co. v. Commissioner

A petition to review a decision of the Board of Tax Appeals in this proceeding was heretofore heard by this court and at that time a per curiam opinion was rendered. See 69 F.(2d) 432, 433 . The Board of Tax Appeals was directed to find specifically the actual value of the option involved at the time it was transferred to petitioner. In that connection, among other things, the court said:

The Board of Tax Appeals declined to hear further testimony, but based upon the evidence previously submitted it definitely found: “The actual cash value of the option on January 25, 1911, was $25,000.”

This review involves income and excess profits tax for the year' 1921 in the amount of $45,293.85, proposed against the petitioner.

Petitioner is a California corporation. On January 25, 1911, it acquired in payment of its capital stock a certain option to purchase the lands hereinafter mentioned. The sole question involved is the actual value of this option at the time it was acquired by petitioner. If the value of the option is satisfactorily substantiated, there is. no question about its inclusion in invested capital.

In 1910 and prior thereto, one Emily B. Hopkins, now deceased, owned…