Spero v. Commissioner
United States Tax Court
1. Basis -- Stock Sold by Trust. -- Basis of stock sold by trustee under a trust instrument which granted trustee the right to invade corpus for benefit of settlor but did not reserve right to settlor to revoke, held, to be cost of stock to settlor under provisions of section 113 (a) (2) of 1939 Internal Revenue Code. 2. Basis -- Payment to Widow, Attorneys' Fees and Estate Taxes. -- Amount paid to settlor's widow in compromise of suit brought by her claiming widow's share…
Read the full summary
1. Basis -- Stock Sold by Trust. -- Basis of stock sold by trustee under a trust instrument which granted trustee the right to invade corpus for benefit of settlor but did not reserve right to settlor to revoke, held, to be cost of stock to settlor under provisions of section 113 (a) (2) of 1939 Internal Revenue Code. 2. Basis -- Payment to Widow, Attorneys' Fees and Estate Taxes. -- Amount paid to settlor's widow in compromise of suit brought by her claiming widow's share under State law, amount paid to attorneys in such litigation and Federal and State estate taxes paid, held, not to be…
1Opinion of the Court
Atkins, Judge:
The respondent determined deficiencies in income tax for the calendar years 1949 and 1950 in the respective amounts of $8,275.44 and $12,966.23. The deficiencies result principally from the respondent’s determination that the basis of shares of stock sold by the petitioner-trust was the cost thereof to the settlor of the trust rather than the fair market value at the date of the settlor’s death which was used as the basis in computing the gain reported in the income tax returns.
The petitioner alleges error in the respondent’s failure to use fair market value at date of death as…
2Cases cited18 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Lyeth v. HoeySupreme Court of the United States · 1938
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- JONES'ESTATE v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- Bowers v. LumpkinCourt of Appeals for the Fourth Circuit · 1944
13 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Manufacturers Hanover Trust Company, as Trustee Under Indenture Dated November 15, 1927, Made by Henry H. Rogers, Deceased v. The United StatesUnited States Court of Claims · 1963
- Moore Trust v. CommissionerUnited States Tax Court · 1968
- Moore Trust v. CommissionerUnited States Tax Court · 1968
- Spero v. CommissionerUnited States Tax Court · 1958