Robinson

Respondent, the Commissioner of Internal Revenue, determined that in 1927 petitioner, H. T. Robinson, had acquired, at a total cost of $35,751.93, bonds of Ocean Park Heights Water Company, Incorporated, of the face value of $100,000 and 1,250 shares of that company’s capital stock; that, .later in 1927, petitioner had sold part of the bonds ($80,000 face value) for $73,467.36, realizing therefrom a net gain of $37,715.43; that in 1928 petitioner had sold the stock for $120,470.04, all of which was net gain; that petitioner had not reported these gains as income nor paid any tax thereon; and that, consequently, there were, in respect of petitioner’s income tax for 1927 and 1928, deficiencies of $4,883.80 and $7,275.21, respectively.

Petitioner petitioned the Board of Tax Appeals for a redetermination of the claimed deficiencies. The sole question raised by his petition was whether, for the purpose of determining his gain or loss, the proper cost basis of the bonds and stock was $35,-751.93, as claimed by respondent, or whether, as claimed by petitioner, the proper cost basis was $206,191.86. The Board decided this question in respondent’s favor. Petitioner seeks reversal.

The…