Lare v. Commissioner
United States Tax Court
Petitioner, who was engaged in protracted litigation over the validity of his wife's will, incurred certain expenses in order to acquire particular assets in kind, mostly stocks, from the estate. Included among such expenses were settlement payments made to will contestants and legal fees. The desired assets were ultimately acquired and then sold by the petitioner.
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Petitioner, who was engaged in protracted litigation over the validity of his wife's will, incurred certain expenses in order to acquire particular assets in kind, mostly stocks, from the estate. Included among such expenses were settlement payments made to will contestants and legal fees. The desired assets were ultimately acquired and then sold by the petitioner. Held, (1) the United Pocahontas Coal Co. stock was owned by petitioner when it was sold and the gain thereon is taxable to him in 1968; (2) additions to basis must be allocated proportionately among the stocks; (3) petitioner is…
1Opinion of the Court
Dawson, Judge:
Respondent determined a deficiency of $89,814.73 in the petitioners’ Federal income tax for the year 1968.
Respondent has made various concessions relating to income adjustments and additions to basis which affect the computation of gain from the sale of United Pocahontas Coal Co. stock. These concessions will be reflected in the Rule 155 computation. The following issues remain for our decision: (1) Whether petitioner Marcellus R. Lare, Jr., was the owner of 708 shares of United Pocahontas Coal Co. stock sold in 1968 so that he is taxable on the gain realized from such sale; (2)…
2Cases cited21 opinions
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