Dewees v. Commissioner
United States Tax Court
Petitioner's father created an inter vivos short term trust on May 16, 1924, which he extended several times. Under the terms of the trust the grantor retained at all times the right to change the beneficiaries and to substitute new beneficiaries, and to withdraw amounts from the principal not exceeding $ 50,000. The trust income was payable to the grantor, and, if the trust terminated prior to his death, the principal was distributable to him.
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Petitioner's father created an inter vivos short term trust on May 16, 1924, which he extended several times. Under the terms of the trust the grantor retained at all times the right to change the beneficiaries and to substitute new beneficiaries, and to withdraw amounts from the principal not exceeding $ 50,000. The trust income was payable to the grantor, and, if the trust terminated prior to his death, the principal was distributable to him. Upon the death of the grantor in 1935 the trustee distributed to petitioner certain securities out of the trust corpus in distribution of her share of…
1Opinion of the Court
OPINION.
HaeRON, Judge:
The question is what the proper basis was of certain securities sold by petitioner during the taxable year. The securities were received by the petitioner after the death of her father, from an inter vivos trust established by him during his lifetime. Under section 113 (a) (5) of the Revenue Act of 1936,1 the basis of the securities in petitioner’s hands is the fair market value at the date of the grantor’s death if the securities were obtained by bequest, devise, or inheritance, or if they were obtained from an inter vivos trust the income of which was payable to the…
2Cases cited2 opinions
- Helvering v. HallockSupreme Court of the United States · 1940
- Long v. Tradesmens Natl. B. T. Co.Superior Court of Pennsylvania · 1932
3Cited by5 opinions
- Miriam Coward Pierson v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Boston Safe Deposit & Trust Co. v. State Tax CommissionMassachusetts Supreme Judicial Court · 1963
- Spero v. CommissionerUnited States Tax Court · 1958
- Dewees v. CommissionerUnited States Tax Court · 1943
- Spero v. CommissionerUnited States Tax Court · 1958