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Helvering v. Rankin, 295 U.S. 123, 127 (1935), where the Supreme
Court described stock transfers of the taxpayer, Turner, stating:
In none of these transactions did the broker
deliver to Turner, or Turner to the broker, any stock
certificate. No specific certificate of stock was ever
bought or sold by the broker for Turner; and none was
earmarked or allocated for him in any manner. The
purchases and sales affecting his account were made
through the medium of street certificates handled by
the broker; and the transactions were evidenced solely
by debits and credits in his account on the broker’s
books * * *
Petitioner’s assertion that she acquired the subject shares
only upon Atlas’s issuance of a new certificate is further eroded
by our finding that she was the one who in fact caused Atlas to
issue a new certificate. Petitioner’s ability to cause the
cancellation of certificate number 6278 and the issuance of
certificate number 6980 is indicative of her ownership of the
subject shares before November 28, 2001, the date on which that
new certificate was issued. While petitioner points the Court to
Rev. Rul. 81-158, 1981-1 C.B. 205, in search of a contrary
holding, she construes that ruling too narrowly. Although both
situations in the ruling do conclude that the transfer of stock
occurs when the transfer agent is directed to reissue shares in
the name of the new owner, the ruling does not conclude, as
petitioner would have it be, that a transfer of stock may only
occur when a transfer agent receives such a direction.
Nor is it dispositive to our decision that certificate
number 6278 contained the referenced restrictive legend. Given
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