Harlan F. Stone

“ But this specification is not enough to restrict the effect of the general provisions of these acts which impose a tax on the income, including capital gains, of taxpayers. The use of the word cost does not preclude the computation and assessment of the taxable gains on the basis of the value of property, rather than its cost, where there is no purchase by the taxpayer, and thus no cost at the controlling date. ”

“ Petitioner's tax returns [1] were for the calendar years 1924 and 1925. Sections 202 (a, b) and 214 (a) (8) , (10) of the 1921 Act, 42 Stat. 229, 239-241, and section 204 (a) , (b) , (c) of the 1924 and 1926 Acts (26 USCA § 935 and note) provide that the basis for computing gain or loss on the sale of property, and depreciation and depletion, shall be its cost, or its value on March 1, 1913, if acquired before that date. None of the acts specifically provide a basis for making the computations where return is made of income received by the estate of a decedent in the course of administration. ”

“ Each makes provision for the imposition of a tax upon the estates of deceased persons, and the 'gross estate' which is the basis for computing the tax is the value of the decedent's property at the time of his death. ”