Merrell v. Commissioner
United States Board of Tax Appeals
Where by the terms of a will stock is placed in trust to pay the income to three beneficiaries and to distribute the stock equally among them or their estates upon the death of one of them, and before the contingency happens, the beneficiaries, who are also executors and trustees, pursuant to authority expressly granted in the will, decide to dispose of the stock, and as executors, trustees and individuals, sell to each of themselves as individuals at par one third of the…
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Where by the terms of a will stock is placed in trust to pay the income to three beneficiaries and to distribute the stock equally among them or their estates upon the death of one of them, and before the contingency happens, the beneficiaries, who are also executors and trustees, pursuant to authority expressly granted in the will, decide to dispose of the stock, and as executors, trustees and individuals, sell to each of themselves as individuals at par one third of the stock, the beneficiaries acquire title to the stock by purchase under the agreement of sale and not by specific bequest,…
1Opinion of the Court
OPINION.
MuRdock:
The Commissioner determined a deficiency of $5,099.83 in the petitioner’s income tax for 1930. The case was submitted upon a stipulation of facts without any appearances. The petitioner sold 1,000.16 shares of Borden Co. common stock in 1930 for $67,045.05. *626The petitioner reported his profit, using $63,800.21 as his basis for gain or loss on the sale of those shares. The Commissioner contends that the basis is only $24,126.70. The sole issue in this proceeding is therefore the cost to the petitioner of that Borden stock.
The petitioner acquired the Borden stock in 1928 in…
2Cited by2 opinions
- Merrell v. CommissionerUnited States Board of Tax Appeals · 1936
- Merrell v. CommissionerUnited States Board of Tax Appeals · 1935