Howard v. Commissioner
United States Tax Court
Father of petitioner created a trust on July 1, 1920, and conveyed to his wife, as trustee, his automobile business together with the property appurtenant thereto.
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Father of petitioner created a trust on July 1, 1920, and conveyed to his wife, as trustee, his automobile business together with the property appurtenant thereto. Under terms of trust indenture petitioner became entitled to receive one-fifth of the net income of the business accumulated between the time of the creation of the trust and the date he reached the age of 21. In December 1923, the trustee created a corporation and transferred to it the automobile business and its assets in exchange for all of its stock consisting of 15,000 shares. On March 31, 1925, petitioner reached the age of…
1Opinion of the Court
OPINION.
Raum, Judge:
The sole issue involves the basis for gain or loss of the 600 shares of stock sold by petitioner during 1948. The Commissioner contends that since the stock had been received by the trustee on December 20, 1923, in a tax-free exchange and thus acquired a basis of $143.9873 per share in the hands of the trustee, that basis carried over in the hands of petitioner when the shares were distributed to him several years later in extinguishment of his claim to his share of the accumulated earnings of the automobile business. The Commissioner relies upon Maguire v. Commissioner,…
2Cases cited8 opinions
- Helvering v. ReynoldsSupreme Court of the United States · 1941
- Maguire v. CommissionerSupreme Court of the United States · 1941
- Kenan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1940
- Archbold v. HelveringCourt of Appeals for the Second Circuit · 1940
- Brinckerhoff v. CommissionerUnited States Tax Court · 1947
3 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Howard v. CommissionerUnited States Tax Court · 1955