Gould v. Commissioner
United States Tax Court
Gift Tax -- Value. -- Where a taxpayer purchased a diamond ring at retail and gave it to his wife one week later, the value of the ring for gift tax purposes is determined to be an amount equal to the total purchase price paid by the taxpayer for the ring, including the 10 per cent Federal excise tax which the seller added to the price and later paid to the collector of internal revenue, since that sale is the best evidence of value in the record.
1Opinion of the Court
OPINION.
Murdock, Judge-.
The Commissioner determined a deficiency of $2,436 in gift tax for 1943. Tbe only issue for decision is whether tbe value of a gift made by the decedent in 1943 was $58,000, as returned, or was $63,800, as determined by tbe Commissioner in arriving at tbe deficiency. Tbe facts have been stipulated.
Frank Miller Gould died in 1945 and his estate is represented by bis executors.
The decedent purchased a diamond ring on September 29, 1943, from a retail jeweler in New York City. The purchase was an arm’s length transaction.
The retail price of the ring was $58,000 and the…
2Cases cited1 opinion
- Guggenheim v. RasquinSupreme Court of the United States · 1941
3Cited by20 opinions
- Estate of Smith v. CommissionerUnited States Tax Court · 1972
- Publicker v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1953
- Rohmer v. CommissionerUnited States Tax Court · 1954
- Wells v. CommissionerUnited States Tax Court · 1968
- Duke v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1953
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