Vale v. Commissioner
United States Board of Tax Appeals
1. In 1925 the petitioner sold certain stock and bonds received by her upon a distribution in 1920 or a subsequent year of a portion of the assets of a trust estate in which in 1910 she had acquired a one-sixth residuary interest in the corpus and the income. Such interest was, under the will, charged with its proportional part of certain stated periodical payments to be made during the lives of certain other beneficiaries.
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1. In 1925 the petitioner sold certain stock and bonds received by her upon a distribution in 1920 or a subsequent year of a portion of the assets of a trust estate in which in 1910 she had acquired a one-sixth residuary interest in the corpus and the income. Such interest was, under the will, charged with its proportional part of certain stated periodical payments to be made during the lives of certain other beneficiaries. Held, that in determining the gain or loss from the sale of the stock and bonds their value on the basic date is to be reduced by a proportional part of the value of the…
1Dissent
Black,
dissenting: I dissent from the conclusion reached by the majority on the first point.
I believe we were in error in the rule which we laid down in William Huggett, 24 B.T.A. 669, and that case should no longer be followed. I think the Court of Appeals of the District of Columbia, in Huggett v. Commissioner, 64 Fed. (2d) 705, was right wherein it held in substance that the basis of property acquired by a remainder interest under a will, upon the death of the life tenant, is the value of the property at the date of the death of the testator or where death of the testator occurred prior to…
2Cases cited4 opinions
- Griscom v. CommissionerUnited States Board of Tax Appeals · 1931
- Huggett v. CommissionerUnited States Board of Tax Appeals · 1931
- Molter v. CommissionerUnited States Board of Tax Appeals · 1932
- Hopkins v. CommissionerUnited States Board of Tax Appeals · 1933