Shelden v. Commissioner
United States Board of Tax Appeals
1. The petitioner, H. D. Shelden, made a valid gift to his children of a real estate subdivision business on or prior to November 3, 1920. The basis for computing gain or loss to the donees from sale of the property and from certain installment contracts is the fair market price or value at the date of the gift. 2. A donor of installment contracts receivable realizes no taxable income at the effective date of the gift or in the years when the donees collect the installment…
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1. The petitioner, H. D. Shelden, made a valid gift to his children of a real estate subdivision business on or prior to November 3, 1920. The basis for computing gain or loss to the donees from sale of the property and from certain installment contracts is the fair market price or value at the date of the gift. 2. A donor of installment contracts receivable realizes no taxable income at the effective date of the gift or in the years when the donees collect the installment payments. 3. A donee of installment contracts receivable is not taxable on the profit computed for the donor when…
1Opinion of the Court
*13OPINION.
LaNSdox :
Section 202 (a) (2) of the Eevenue Act of 1921 provides that gain or loss from the sale or other disposition of property acquired by gift after December 31,1920, shall be computed upon the same basis which the property would have had in the hands of the donor or the last preceding owner by whom it was not acquired by gift.. If the petitioners’ contention that II. D. Slielden made a valid gift of the Eosedale Park property to his children on or before November 3, 1920, is correct, the basis for computing gain or loss upon sale of the property is the fair market price or value…
2Cases cited20 opinions
- Allen-West Commission Co. v. GrumblesCourt of Appeals for the Eighth Circuit · 1904
- Bowen v. LansingMichigan Supreme Court · 1901
- Shepard v. ShepardMichigan Supreme Court · 1910
- King v. CarpenterMichigan Supreme Court · 1877
- Walker v. CasgrainMichigan Supreme Court · 1894
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3Cited by5 opinions
- Wright v. CommissionerUnited States Board of Tax Appeals · 1934
- Huntington v. CommissionerUnited States Board of Tax Appeals · 1937
- Oak Woods Cemetery Ass'n v. CommissionerUnited States Board of Tax Appeals · 1938
- Shelden v. CommissionerUnited States Board of Tax Appeals · 1931
- Stonebrook v. CommissionerUnited States Tax Court · 1980