Francis v. Commissioner
United States Board of Tax Appeals
1. Petitioners were remaindermen under a declaration of trust of personalty made originally in 1892. The life tenant died March 3, 1921, and under state law petitioners became at once entitled and the trust ceased except for the power of the trustee to sell. The trustee thereafter sold and distributed the proceeds.
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1. Petitioners were remaindermen under a declaration of trust of personalty made originally in 1892. The life tenant died March 3, 1921, and under state law petitioners became at once entitled and the trust ceased except for the power of the trustee to sell. The trustee thereafter sold and distributed the proceeds. Held, the sale resulted in gain or loss to petitioners and the basis thereof is the value of property sold when legally acquired on March 3, 1921. 2. Section 202(a)(2), providing the basis for ascertaining gain or loss on the sale of property acquired by gift after December 31,…
1Opinion of the Court
*1339OPINION.
Steknhagen :
The deduction claimed by each petitioner for 1921 is for a loss said to be realized in the sale in that year by the trust company of securities for less than either the value on March 1, 1913, or'the value when received in 1912 in the Standard Oil distribution, the latter figure being apparently taken as representing the statutory cost. United States v. Flannery, 268 U. S. 98, and Ludington v. McCaughn, 268 U. S. 106. The Commissioner denied the deduction because in his view the trust company was making the sale as a trustee taxable under section 219, Revenue Act of 1921,…
2Cases cited7 opinions
- United States v. FlannerySupreme Court of the United States · 1925
- Taft v. BowersSupreme Court of the United States · 1929
- McCaughn v. LudingtonSupreme Court of the United States · 1925
- Cochrane v. . SchellNew York Court of Appeals · 1894
- In re the Estate of FinckNew York Surrogate's Court · 1918
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3Cited by4 opinions
- Anderson v. WilsonSupreme Court of the United States · 1933
- Beatty v. CommissionerUnited States Board of Tax Appeals · 1933
- Russell v. BowersDistrict Court, S.D. New York · 1939
- Francis v. CommissionerUnited States Board of Tax Appeals · 1929