Helvering v. Gambrill, 313 U.S. 11 (1941)

Helvering v. Gambrill

No. 472

Argued March 6, 1941
Decided March 31, 1941
313 U.S. 11

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

1. Under § 113(a)(5) of the Revenue Act of 1928, the basis for ascertaining gain or loss from the sale of property delivered to the taxpayer by testamentary trustees is its value when distributed by the executors to the trustees if the property was owned by the decedent at death, and cost to the trustee if it was purchased by them. Maguire v. Commissioner, ante p. 1. P. 13.

2. For the purpose of determining whether property delivered to taxpayer by testamentary trustees was "capital assets" within the capital gains and loses provisions of the Revenue Act of 1928, the period for which the taxpayer has held the property (although a remainder interest) dates from the death of the decedent in the case of property owned by the decedent at death, and from the date of purchase in the case of property purchased by the trustees. P. 14.

3. "Property held by the taxpayer," as used in § 101(c)(8) of the: Revenue Act of 1928, embraces not only full ownership, but also any interest, whether vested, contingent, or conditional. P. 15.

112 F.2d 530 reversed.

Certiorari, 311 U.S. 639, to review the affirmance of a decision of the Board of Tax Appeals, 38 B.T.A. 981, redetermining a deficiency in income tax.