Farid-Es-Sultaneh v. Commissioner
| Farid-Es-Sultaneh v. Commissioner | |
|---|---|
| Court | United States Court of Appeals for the Second Circuit |
| Full case name | Farid-Es-Sultaneh v. Commissioner of Internal Revenue |
| Decided | April 11, 1947 |
| Citation | 160 F.2d 812 (2d Cir. 1947) |
| Court membership | |
| Judges sitting | Thomas Walter Swan, Harrie B. Chase, Charles Edward Clark |
| Case opinions | |
| Majority | Chase, joined by Swan |
| Dissent | Clark |
Farid-Es-Sultaneh v. Commissioner, 160 F.2d 812 (2d Cir. 1947) is a United States federal income tax case. It is notable (and thus appears frequently in law school casebooks) for the following holding:
- Appreciated property, transferred to a wife pursuant to an antenuptial agreement, was not a gift, but was consideration for which she sold her inchoate marital rights.
- This applies the general rule, that a taxpayer recognizes a gain on the transfer of appreciated property in satisfaction of a legal obligation.
- Therefore, the property's basis in her hands was not a "carryover" (gift) basis from her husband. Instead, the court set its basis at its fair market value.