New York Trust Co. v. Commissioner
United States Board of Tax Appeals
1. Under the circumstances herein, held that petitioner has not shown that certain stock was not acquired by gift after December 31, 1920, within the meaning of section 202(a)(2) of the Revenue Act of 1921. The basis to be used in determining gain or loss upon the sale thereof by the trustee is the cost of such stock to the grantor. 2. Section 202(a)(2) of the Revenue Act of 1921 is constitutional.
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1. Under the circumstances herein, held that petitioner has not shown that certain stock was not acquired by gift after December 31, 1920, within the meaning of section 202(a)(2) of the Revenue Act of 1921. The basis to be used in determining gain or loss upon the sale thereof by the trustee is the cost of such stock to the grantor. 2. Section 202(a)(2) of the Revenue Act of 1921 is constitutional. Taft v. Bowers,278 U.S. 470. 3. Held, petitioner is not entitled to have its tax computed under section 206 of the Revenue Act of 1921, since the property was not held for more than two years.
1Opinion of the Court
*1129OPINION.
McMahon :
We must first determine the proper basis for the computation of gain or loss upon the sale by the petitioner in 1922 of 6,000 shares of common stock of the Corn Products Refining Company which were acquired by petitioner as trustee in 1921.
The respondent has held that subdivision (2) of section 202 (a) of the Revenue Act of 19211 is here applicable and that the proper basis to be used is the cost of such stock to the donor.
The respondent has held that the irrevocable indenture dated December 24, 1921, accomplished a gift of the 6,000 shares of stock in question. There is no…
2Cases cited3 opinions
- Burnet v. GuggenheimSupreme Court of the United States · 1933
- Taft v. BowersSupreme Court of the United States · 1929
- Cooper v. United StatesSupreme Court of the United States · 1930
3Cited by5 opinions
- Helvering v. New York Trust Co.Supreme Court of the United States · 1934
- Curlee v. CommissionerUnited States Board of Tax Appeals · 1933
- Russell v. BowersDistrict Court, S.D. New York · 1939
- Curlee v. CommissionerUnited States Board of Tax Appeals · 1933
- New York Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1933