Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Official citation and/or docket number and footnotes (if any) for this case available with purchase.

Learn more about what you receive with purchase of this case.

PROVIDENT NATL. BANK v. UNITED STATES

UNITED STATES DISTRICT COURT, EASTERN DISTRICT OF PENNSYLVANIA


January 29, 1981

PROVIDENT NATIONAL BANK, co-trustee of four trusts u/a dated June 16, 1971
v.
UNITED STATES of America

The opinion of the court was delivered by: MCGLYNN

MEMORANDUM OF DECISION

This action was brought by the plaintiff as co-trustee of four trusts to contest the denials of claims of the trusts for refund of income taxes. Presently before the court are motions for summary judgment by plaintiff and defendant. Under Fed.R.Civ.P. 56(c) summary judgment is appropriate if the record shows that there is no genuine issue of material fact and that the moving party is entitled to summary judgment as a matter of law. For the following reasons, summary judgment will be granted in favor of the defendant. The following are the facts as developed from documents, pleadings, and affidavits.

 Plaintiff, Provident National Bank, is the co-trustee of four trusts created on June 16, 1971 by the late George D. Widener for his four stepdaughters. The day after the trust was created, Widener transferred equal amounts of publicly traded stock in five corporations, including Gulf Oil Corporation and IBM, to each of the trusts. Widener reported the transfers as gifts and paid gift taxes thereon. Sometime in August, 1972, each of the four taxpayer-trusts sold the same amounts of Gulf Oil and IBM stocks. Under section 1015 of the Internal Revenue Code, 26 U.S.C. ยง 1015, the basis of the stocks was calculated by using the same basis as the stocks had in the hands of the donor and increasing it by the gift tax paid. Thus, when each of the taxpayer-trusts sold 1,037 shares of Gulf Oil and 325 shares of IBM stock, the capital gain thereon was determined as follows: Securities Long-Term Sold Sales Price Basis Capital Gain Gulf Oil 1037 shares $ 23,232.28 $ 18,727.62 $ 4,504.66 IBM 325 Shares $ 135,262.29 $ 49,966.04 $ 85,296.25

19810129

© 1992-2004 VersusLaw Inc.



Buy This Entire Record For $7.95

Official citation and/or docket number and footnotes (if any) for this case available with purchase.

Learn more about what you receive with purchase of this case.