Rogers v. Commissioner
United States Board of Tax Appeals
1. In 1921 petitioners Tuthill and Thrall agreed to pay their mother an annuity of $16,000 per year in consideration of the transfer to them of stock having a fair market value considerably in excess of the purchase price of such an annuity.
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1. In 1921 petitioners Tuthill and Thrall agreed to pay their mother an annuity of $16,000 per year in consideration of the transfer to them of stock having a fair market value considerably in excess of the purchase price of such an annuity. Held, that the difference between the amount paid to the annuitant prior to her death and the fair market value of the stock at the time of transfer constitutes a gift, and that the basis for computing gain realized in the subsequent sale of the stock by the donees is the same as it would be in the hands of the donor. 2. The petitioners are not estopped…
1Opinion of the Court
*1001OPINION.
Seaavell :
Petitioners Tuthill and Thrall insist that the stock they acquired from their mother under the provisions of the contract of July 29, 1921, was by way of gift, and the respondent adheres to the conclusion he reached at the time of determining the deficiencies, that the transaction was an outright sale of. securities for an annuity. On this theory the respondent limited the cost basis of each kind of stock so acquired to a proportionate part of $5,333.36, the amount paid to Sarah E. Tuthill under the contract prior to her death on December 1, 1921, based upon the values…
2Cases cited11 opinions
- Brewster v. GageSupreme Court of the United States · 1930
- Philadelphia, Wilmington & Baltimore Railroad v. HowardSupreme Court of the United States · 1852
- Ray Consolidated Copper Co. v. United StatesSupreme Court of the United States · 1925
- United Press Ass'ns v. National Newspapers Ass'nCourt of Appeals for the Eighth Circuit · 1918
- Chapman v. . GatesNew York Court of Appeals · 1873
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3Cited by19 opinions
- Turner v. CommissionerUnited States Tax Court · 1968
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- Dorothy E. Brown and Donald Lee Brown and United States National Bank of Oregon, Etc. v. United StatesCourt of Appeals for the Ninth Circuit · 1970
- Estate of Noble v. Comm'rUnited States Tax Court · 2005
- Feldman v. CommissionerUnited States Tax Court · 1968
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