Jones v. Commissioner
United States Tax Court
In 1915 D made an inter vivos gift of certain securities to a trust which he established at the same time. Upon the death of the income beneficiary in 1953, T, who had a contingent interest in the remainder, received distribution of her share of those securities.
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In 1915 D made an inter vivos gift of certain securities to a trust which he established at the same time. Upon the death of the income beneficiary in 1953, T, who had a contingent interest in the remainder, received distribution of her share of those securities. Held, in computing gain upon disposition of the securities in 1969, T's basis must be determined with reference to their fair market value in 1915 rather than in 1953. Sec. 1015(c), I.R.C. 1954. Richard Archbold, 40 B.T.A. 1238, affirmed 115 F. 2d 1005 (C.A. 2), certiorari denied 313 U.S. 584, followed.
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined a $40,435' deficiency in petitioners’ 1969 income tax. The sole remaining issue involves ascertainment of the basis of certain shares of stock received by petitioner Olga Jones in 1953 out of the remainder of a trust that had been created in 1915. The outcome depends upon whether the “time of * * * acquisition” of the shares, under section 1015 (c), I.R.C. 1954 (relating to transfers in trust before January 1, 1921), was in 1915 or 1953. The facts have been stipulated.
Petitioners filed a joint Federal income tax return for the calendar year 1969…
2Cases cited29 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Bingler v. JohnsonSupreme Court of the United States · 1969
- Brewster v. GageSupreme Court of the United States · 1930
- Sanford v. CommissionerUnited States Tax Court · 1968
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3Cited by1 opinion
- Jones v. CommissionerUnited States Tax Court · 1973