Henry A. Cleland Estate Co. v. Commissioner
United States Board of Tax Appeals
1. Under the provisions of a will and under the laws of Michigan the interests of certain remaindermen were vested and they acquired the property devised to them as of the date of the death of the testator. 2. The fair market value of certain real estate determined as of March 1, 1913. 3. The proper basis for determination of gain or loss on the sale of property devised subject to a life estate is the fair market value of the property as of the testator's death.
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1. Under the provisions of a will and under the laws of Michigan the interests of certain remaindermen were vested and they acquired the property devised to them as of the date of the death of the testator. 2. The fair market value of certain real estate determined as of March 1, 1913. 3. The proper basis for determination of gain or loss on the sale of property devised subject to a life estate is the fair market value of the property as of the testator's death. Huggett v. Burnet, 64 Fed.(2d) 705, followed. 4. Evidence as to the value of a building based solely on a computation, in which the…
1Opinion of the Court
*440OPINION.
Marquette :
The petitioner concedes that the basis for the computation of gain on the sale made in 1925 and of the loss suffered in 1927 is the same as if the gain or loss had been made or suffered by the beneficiaries under the will of Henry A. Cleland. Section 202 (c) (3) of the Revenue Act of 1921, sections 203 (b) (4) and (i), and 204 (a) (8) of the Revenue Act of 1926. The respondent has determined that the basis in this case is the fair market values of the petitioner’s properties on March 1, 1913. See section 204 (a) (5) and (b) of the Revenue Act of 1926. The petitioner…
2Cases cited5 opinions
- Burnet v. HoustonSupreme Court of the United States · 1931
- Rockford Malleable Iron Works v. CommissionerUnited States Board of Tax Appeals · 1925
- McInerny v. HaaseMichigan Supreme Court · 1910
- Molter v. CommissionerUnited States Board of Tax Appeals · 1932
- Warner v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by2 opinions
- Stratton v. CommissionerUnited States Tax Court · 1969
- Henry A. Cleland Estate Co. v. CommissionerUnited States Board of Tax Appeals · 1933