Source: https://www.legalcrystal.com/case/97184/helvering-vs-gambrill
Timestamp: 2018-06-21 19:35:32
Document Index: 369260861

Matched Legal Cases: ['§ 101', '§ 113', '§ 101', '§ 113', '§ 113', '§ 101', '§ 113', '§ 101', '§ 113', '§ 101', '§ 113']

Helvering Vs Gambrill - Citation 97184 - Court Judgment | LegalCrystal
Helvering Vs. Gambrill - Court Judgment
LegalCrystal Citation legalcrystal.com/97184
Case Number 313 U.S. 11
Respondent Gambrill
.....101(c)(8). and § 101(c)(8)(b) provides: "in determining the period for which the taxpayer has held property, however acquired, there shall be included the period for which such property was held by any other person, if, under the provisions of section 113, such property has, for the purpose of determining gain or loss from a sale or exchange, the page 313 u. s. 14 same basis, in whole or in part, in his hands as it would have in the hands of such other person." we are of the view that, under these provisions, respondent's holding period dates from the decedent's death for property which she then owned, and from the date of purchase for property purchased by the trustees. in mcfeely v. commissioner, 296 u. s. 102 , this court held that a legatee's holding.....
Helvering v. Gambrill - 313 U.S. 11 (1941)
U.S. Supreme Court Helvering v. Gambrill, 313 U.S. 11 (1941)
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. 313 U. S. 1 . P. 313 U. S. 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. 313 U. S. 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. 313 U. S. 15 .
The questions involved here are in part the same as those in Maguire v. Commissioner, ante, p. 313 U. S. 1 . Respondent
was a remainderman under a trust created by the will of his grandmother [ Footnote 1 ] who died in 1897. The trust res, consisting of personalty, was delivered by the executors to themselves as trustees in 1898. The life beneficiary, respondent's mother, died in March, 1928. On May 5, 1928, the trustees delivered the corpus to respondent as remainderman. Some of the property was part of the original trust res, and some was purchased by the trustees both prior to and subsequent to March 1, 1913. During the year 1930 (in February, on May 6, and in June), respondent sold some of the property in each group. The Board of Tax Appeals (38 B.T.A. 981) and the Circuit Court of Appeals (112 F.2d 530) held: (1) that, for the purpose of determining gain or loss on the sale of the property in question, the basis to respondent by virtue of § 113(a)(5) of the Revenue Act of 1928, 45 Stat. 791, was the fair market value of the property on the date when the corpus was delivered to
The rulings on the first question were erroneous. For the reasons stated in Maguire v. Commissioner, supra, the basis under § 113(a)(5) for the property delivered to respondent by the testamentary trustees was its value when distributed by the executors to the trustees if the property was owned by the decedent at her death, and cost to the trustees if it was purchased by them. [ Footnote 2 ]
We are of the view that, under these provisions, respondent's holding period dates from the decedent's death for property which she then owned, and from the date of purchase for property purchased by the trustees. In McFeely v. Commissioner, 296 U. S. 102 , this Court held that a legatee's holding period under § 101(c)(8) of the 1928 Act dated from the decedent's death for property owned by the decedent and distributed to the legatee by the executors, in spite of the fact that the legatee's basis under § 113(a)(5) was value at the time of distribution to him by the executors. The date of acquisition was held to be the date of death, regardless of the gap between that date and the date of distribution. And that result was reached even though some of the taxpayers involved were residuary legatees whose interests at date of death were not unconditional. The reasoning of that case plus § 101(c)(8)(B) make it plain that respondent's interest, albeit a remainder, was acquired at the date of decedent's death for property then owned, and at the date of purchase for property purchased by the trustees. The continuity in his holding was not broken by the intervening trust. The formal constitution of that trust, though of special significance under § 113(a)(5) ( Maguire v. Commissioner, supra ), did not change the basic quality of his property interest. And the fact that that interest did not ripen into full and complete ownership, except by the passage of time or the occurrence of subsequent events, is inconsequential. For § 101(c)(8)(B) provides, as we have seen, that, in determining the taxpayer's holding period, there shall be included the period for which the property was held by any other person if, under § 113, the property had the same basis in whole or in part in the taxpayer's hands as it would have in the hands of the other person. It is plain that, under