Helvering v. Campbell, 313 U.S. 15 (1941)

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Helvering v. Campbell

No. 473

Argued March 6, 1941
Decided March 31, 1941 *
313 U.S. 15

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

1. Under § 113(a)(5) of the Revenue Acts of 1928 and 1932, the basis for ascertaining gain or loss from the sale of property which had been delivered to the taxpayer by testamentary trustees is, in respect to securities owned by the decedent at death and securities purchased by the executor, their value when delivered by the executors to the trustees; and, in respect to securities purchased by the trustees, their cost to the trustees. P. 19.

2. For the purpose of determining whether property delivered to a taxpayer by testamentary trustees was "capital assets" within the capital gain and losses provisions of the Revenue Act of 1928, the period for which the taxpayer has "held" property which had been purchased by the trustees date from the time of such purchase. P. 20.

3. As between stock which was delivered to the taxpayer by testamentary trustees and stock which was purchased by the taxpayer prior to such delivery, but subsequently to the creation of the trust, the former is regarded a having been acquired earlier under the "first in, first out" rule of Treasury Regulation. P. 20.

4. The ascertainment of gain or loss from the sale of property acquired by bequest, devise, or inheritance, may properly be based upon value as of the time when the taxpayer first acquired an interest in the property, though contingent or conditional. Revenue Acts of 1928 and 1932. P. 21.

112 F.2d 530 reversed.

Certiorari, 311 U.S. 639, to review the affirmance of decisions of the Board of Tax Appeals (No. 473, 39 B.T.A. 916) in favor of the taxpayers.