Maguire v. Commissioner, 313 U.S. 1 (1941)

Maguire v. Commissioner


No. 346


Argued March 5, 6, 1941
Decided March 31, 1941
313 U.S. 1

CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE SEVENTH CIRCUIT

Syllabus

1. Under the Revenue Act of 1928, the basis for ascertaining gain or loss from the sale of personalty which had been delivered to the taxpayer by testamentary trustees is --

(1) In the case of personalty which the decedent owned, its value at the time when it was received by the trustees from the executors. P. 3.

(a) This conclusion is supported by the legislative history of the applicable provision of § 113(a)(5) of the Act. P. 5.

(b) Under § 113(a)(5), which provides that the basis for ascertaining gain or loss from the sale of property acquired by general bequest shall be the value at the time of the "distribution to the taxpayer," the time of "distribution to the taxpayer" in this case was the time of the delivery of the property to the trustees by the executors. P. 7.

(2) In the case of personalty purchased by the trustees, the cost thereof to the trustees. P. 8.

(a) The property purchased by the testamentary trustees and subsequently delivered to the taxpayer was not "acquired by will," and the basis is governed by § 113(a), not by § 113 (a)(5). P. 9.

2. Although the title of an Act may not be construed to limit the plain meaning of the text, it may be of aid in resolving an ambiguity. P. 9.

111 F.2d 843 affirmed.

Certiorari, 311 U.S. 27, to review the reversal of a decision of the Board of Tax Appeals redetermining a deficiency in income tax.