Scranton, Lackawanna Trust Co. v. Commissioner
United States Board of Tax Appeals
1. Upon the sale of property by a trustee under an irrevocable trust during the lifetime of the grantor, the basis for gain or loss is the same as it would be in the hands of the grantor. 2. Where no return is ever filed by the taxpayer the imposition of a 25 percent penalty is mandatory.
1Opinion of the Court
*700OPINION.
Arttndell:
The principal question here is whether the basis for determining the gain on the sale of the trusteed stock is the same as the basis in the hands of the grantor of the trust, or the value at the time it was placed in trust. There is no issue as to any of the basic figures. While some of the stock appears to have been acquired by the grantor prior to March 1, 1918, and some by gift and by Avay of stock dividends, the basic figure of $68,985.50, denominated as “ cost ” in the Form 1041 executed by the collector, is not challenged by petitioner. Nor is any claim made by either…
2Cases cited10 opinions
- United States v. WellsSupreme Court of the United States · 1931
- May v. HeinerSupreme Court of the United States · 1930
- Porter v. CommissionerSupreme Court of the United States · 1933
- Taft v. BowersSupreme Court of the United States · 1929
- Burnet v. Northern Trust Co.Supreme Court of the United States · 1931
5 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Noteman v. WelchCourt of Appeals for the First Circuit · 1939
- Darrow v. CommissionerUnited States Tax Court · 1975
- SCRANTON-LACKAWANNA T. CO. v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1935
- Puritan Church-The Church of America v. CommissionerUnited States Tax Court · 1951
- McGrath v. CommissionerUnited States Board of Tax Appeals · 1934
10 more not listed; retrieve them via the Exa API.