Walter's Trust v. Commissioner

GOODRICH, Circuit Judge.

The sole question in this case concerns the basis of determination of gain in the sale of shares of stock by the Caroline S. Walter Trust, etc., the petitioner, in 1935 and 1936. Petitioner contends that the criterion is the fair market value of the shares as of 1918; the Commissioner, with whom the Board of Tax Appeals agreed, asserts it to be that of 1935. Neither side disputes the other’s figures once the basis is established. The relevant statutory provisions are paragraphs (2), (3), and (4) of § 113(a) of the Revenue Act of 1934, c. 277, 48 Stat. 680, 26 U.S.C.A.…