William O. Douglas,
Cary v. Vcommissioner of Internal Revenue…
“ Petitioners are legatees under a testamentary trust created under his will. The trust continued for a period of ten years from his death and terminated on May 20, 1923. As of that time the trustees delivered to petitioners [1] certain securities which were sold by them in 1934 and 1936. The question presented is whether the basis for computing gain or loss on such sales under § 113 (a) (5) of the Revenue Acts of 1934, 48 Stat. 680, and 1936 [2] , 49 Stat. 1648, is the value of the securities when delivered to the legatees or their value on the date of death of the decedent. ”
