Hess v. United States

This case involves the gains on the redemption of 10,650 shares of International Nikoh Corporation (formerly known as International Bolling Mills Products Corporation and hereinafter referred to as Nikoh) in 1965. The issue is whether the bases on which the gains are computed are the amounts used in the estate tax valuation of two estates through which the stock passed to the taxpayers, or the then fair market values to be newly determined without regard to such amounts. We hold the former in the circumstances of this case.

Plaintiffs are Sidney J. Hess, Jr., William J. Friedman and American…