Gardner Trust v. Commissioner
United States Tax Court
Robert B. Gardner transferred certain stock in trust to petitioner for benefit of his wife on December 29, 1921. The stock in question was sold at a gain in 1943, and the issue presented pertains to the basis of the stock. Respondent determined that the December 29, 1921, transfer was a voluntary gift so that petitioner takes the substituted basis of the transferor, Robert B. Gardner.
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Robert B. Gardner transferred certain stock in trust to petitioner for benefit of his wife on December 29, 1921. The stock in question was sold at a gain in 1943, and the issue presented pertains to the basis of the stock. Respondent determined that the December 29, 1921, transfer was a voluntary gift so that petitioner takes the substituted basis of the transferor, Robert B. Gardner. Petitioner contends that the transfer was in consideration of the wife's release of marital rights and takes the basis of its agreed value at the time of the transfer in trust. Held, the transfer in trust was…
1Opinion of the Court
OPINION.
Black, Judge:
This proceeding involves the question of determining the cost basis of certain stock constituting the corpus of the Edna W. Gardner Trust, which stoek was redeemed in a taxable exchange in 1943. The cost basis of this stock depends, in turn, on the basis of stock originally transferred to the trust by Robert. B. Gardner on December 29, 1921. It has been stipulated between the parties that in the event this Court determines that the transfer of December 29, 1921, was a voluntary gift, the cost basis of the redeemed stock should be $68,849.83, or the cost basis of the…
2Cases cited3 opinions
- Blair v. CommissionerSupreme Court of the United States · 1937
- Helvering v. F. & R. Lazarus & Co.Supreme Court of the United States · 1939
- Taurog v. CommissionerUnited States Tax Court · 1948
3Cited by1 opinion
- Gardner Trust v. CommissionerUnited States Tax Court · 1953