Ayer v. Commissioner
United States Board of Tax Appeals
1. Legal expenses paid by the executors of an estate in the process of administration in defending an action for an additional Federal estate tax held not to be an allowable deduction in determining the net income of the estate for the taxable year. 2. Prior to March 1, 1913, the decedent acquired certain corporate stocks which upon his death in 1918 passed to his executors who thereafter sold them.
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1. Legal expenses paid by the executors of an estate in the process of administration in defending an action for an additional Federal estate tax held not to be an allowable deduction in determining the net income of the estate for the taxable year. 2. Prior to March 1, 1913, the decedent acquired certain corporate stocks which upon his death in 1918 passed to his executors who thereafter sold them. Held that the basis for determining the gain or loss resulting from the sale is the value of the stocks at the date of the decedent's death and not cost or March 1, 1913, value whichever is…
1Opinion of the Court
*11OPINION.
Trammell :
At the hearing the petitioners were granted permission to amend their petition to conform to the facts set forth in the stipulation. The petition as thus amended presents for our determination the issues raised by the following allegations of error:
Tbe Commissioner erred in disallowing the deduction of $10,000 legal lees paid by the estate in connection with the defense of the ease of United States v. Ayer, 7 Fed. (2d) 478.
The Commissioner erred in using the March 14, 1918 values, instead of the original costs to testator or March 1, 1913 values (whichever were higher), as a…
2Cases cited1 opinion
- Kornhauser v. United StatesSupreme Court of the United States · 1928
3Cited by10 opinions
- Rowland v. CommissionerUnited States Board of Tax Appeals · 1934
- Ayer v. CommissionerUnited States Board of Tax Appeals · 1932
- Estate of Clack v. CommissionerUnited States Tax Court · 1996
- Estate of Clack v. CommissionerUnited States Tax Court · 1996
- Estate of Willis Edward Clack, Marshall & Ilsley Trust Company, Co-Personal Representative, and Richard E. Clack, Co-Personal Representative v. CommissionerUnited States Tax Court · 1996
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