Jacobs v. Commissioner
United States Board of Tax Appeals
1. An elder brother agreed to purchase a hotel property at a price asserted to be less than its true value. With the intention of conferring a benefit, he caused the property to be conveyed to a younger brother, who agreed to assume and pay the purchase price and an additional amount. Upon a sale by the younger brother, he claims a gift was made and that profit should be computed by using as a base the value of the property when acquired.
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1. An elder brother agreed to purchase a hotel property at a price asserted to be less than its true value. With the intention of conferring a benefit, he caused the property to be conveyed to a younger brother, who agreed to assume and pay the purchase price and an additional amount. Upon a sale by the younger brother, he claims a gift was made and that profit should be computed by using as a base the value of the property when acquired. Denied, upon the grounds (1) that the transaction lacked one of the elements of a gift, i.e., absence of a valuable consideration; and (2) that the evidence…
1Opinion of the Court
*533OPINION.
Phillips :
During the taxable year petitioner sold property which he had acquired in 1920 at a cost to him of $885,750. It is the contention of petitioner that this property was acquired by him as a gift from his brother and that in computing his gain the fair market value, and not the cost, is to be used.
It seems clear that the brother never became the owner of this property. All that he had was a contract for its purchase. If there was any gift, it was of the contract to purchase the property and the contract for its lease. Even with respect to these there was an element of purchase,…
2Cases cited6 opinions
- McKenzie v. . HarrisonNew York Court of Appeals · 1890
- Gray v. . BartonNew York Court of Appeals · 1873
- Kearse v. KearseTexas Commission of Appeals · 1925
- Martin v. MartinIllinois Supreme Court · 1903
- Curriden v. ChandlerSupreme Court of New Hampshire · 1919
1 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Security First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1933
- Langwell Real Estate Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Grossman v. CommissionerUnited States Tax Court · 1973
- Jacobs v. CommissionerUnited States Board of Tax Appeals · 1930
- Langwell Real Estate Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
2 more not listed; retrieve them via the Exa API.