Albert A. Bath v. United States

The question presented by this appeal is whether for the taxable years 1955 and 1956 the appellant-taxpayer, a surviving spouse in a community property state (Texas), is entitled under Section 1014 (b) (6) of the Internal Revenue Code of 1954 to use a “stepped-up” basis for reporting his community share of a long-term capital gain realized on a sale of community property prior to his wife’s death in 1954, the taxpayer and his wife having elected to report the gain on the installment basis under'§ 44 of the Internal Revenue Code of 1939, 1 with the result that the gain would be treated as a…