McKinney v. United States

This case arose out of a tax assessed against and paid by plaintiffs as executors of the estate of McKinney, based on the difference between the appraised value of certain stock as of the date of the death of McKinney and the sale price of the stock.

The applicable sections of the revenue act of 1918 (40 Stat. 1060, 1065) are as follows:

“ Sec. 202. (a) That for the purpose of ascertaining the gain derived or loss sustained from the sale or other disposition of property, real, personal, or mixed, the basis shall be—

“(1) In the case of property acquired before March 1, 1913, the fair market…