Hartley v. Commissioner
United States Board of Tax Appeals
1. The petitioner was eligible to file his election not to come within the provisions of section 702(a) of the Revenue Act of 1928 in the computation of gain or loss from the sale of property in his hands as executor of an estate, but if exercised, such election results only in the recomputation of gain or loss from the sale of assets in the hands of an estate under provisions of law effective at date of filing the return. 2. Reasonableness of salaries and expenses…
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1. The petitioner was eligible to file his election not to come within the provisions of section 702(a) of the Revenue Act of 1928 in the computation of gain or loss from the sale of property in his hands as executor of an estate, but if exercised, such election results only in the recomputation of gain or loss from the sale of assets in the hands of an estate under provisions of law effective at date of filing the return. 2. Reasonableness of salaries and expenses determined. 3. Payment of Federal estate taxes in 1923 may not be used in the determination of a statutory net loss applicable to…
1Opinion of the Court
*954OPINION.
Lansdon :
The income of the petitioner for each of the years 1924 and 1925 included gains from the sale of capital assets, royalties from the production of iron mines held under lease and income from rental properties. In order to determine the correct tax liability for such years, it is necessary to establish the basis upon which gain *955from the sales must be computed. Under the applicable statute and regulations effective in those years, such basis must also be used in computing deductions from income on account of depreciation and depletion. In his income tax returns for the years…
2Cases cited1 opinion
- Brewster v. GageSupreme Court of the United States · 1930
3Cited by2 opinions
- Tutwiler v. CommissionerUnited States Board of Tax Appeals · 1933
- Hartley v. CommissionerUnited States Board of Tax Appeals · 1933