Howard v. Commissioner
United States Tax Court
1. Held: That a property settlement agreement between petitioner's father and mother in 1930, whereby the beneficial interest in certain stock was transferred in trust for the benefit of petitioner and his brothers, was a taxable exchange. The basis to petitioner of a portion of such stock distributed to him in 1950 upon liquidation of the trust is determined accordingly.
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1. Held: That a property settlement agreement between petitioner's father and mother in 1930, whereby the beneficial interest in certain stock was transferred in trust for the benefit of petitioner and his brothers, was a taxable exchange. The basis to petitioner of a portion of such stock distributed to him in 1950 upon liquidation of the trust is determined accordingly. Sec. 113(a)(3), 1939 Code. 2. Held, that legal fees and other expenses incurred by petitioner in 1948 in connection with an official investigation into the artificial stimulation of certain horses owned by him were…
1Opinion of the Court
OPINION.
Raum, Judge:
1. Basis of Stock. — We are asked in this case to determine the basis to petitioner of 1,324 shares of stock distributed to him upon the liquidation of a trust and subsequently surrendered by him for redemption. Petitioner contends that, under the law as it existed in 1930, the property settlement of March 7, 1930, was a taxable sale or exchange giving rise to recognized gain. If so, the basis to the 1930 trust of the beneficial interest in stock transferred by Fannie May was its basis in the hands of Fannie May, increased by the amount of gain recognized by Fannie May on…
2Cases cited8 opinions
- Johnson v. United StatesCourt of Appeals for the Ninth Circuit · 1943
- Rouse v. CommissionerUnited States Tax Court · 1946
- Walz v. CommissionerUnited States Board of Tax Appeals · 1935
- Rouse v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1947
- Archbold v. HelveringCourt of Appeals for the Second Circuit · 1940
3 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Parker v. CommissionerCourt of Appeals for the Eighth Circuit · 1966
- Merle E. Parker, the Foundation for Divine Meditation, Incorporated v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Merle E. ParkerCourt of Appeals for the Eighth Circuit · 1966
- Howard v. CommissionerUnited States Tax Court · 1959