Martha K. Butler Trust v. Commissioner of Taxation

Matson, Justice.

Certiorari upon relation of the commissioner of taxation to review a decision of the state Board of Tax Appeals.

In 1948 the taxpayer sold securities for $304,159.61. The cost basis of the securities under the Minnesota Income Tax Act was the value of the securities on January 1, 1933, which was $94,500. The cost basis for the Federal income tax was the value of the securities in the estate of the decedent who died September 22, 1926, which amounted to $46,200. The Minnesota long-term capital gain was $209,659.61 of which 50 percent was taxable. The Federal capital gain was…