Taft v. Bowers
United States Supreme Court
278 U.S. 470 (1929)
Relevant factsFree
Taft's (plaintiff) father gave her stock that had appreciated from $1,000 to $2,000 during his ownership, and she later sold it for $5,000; the government taxed her on the full $4,000 gain (encompassing both her father's and her own appreciation), and she sued for a refund, arguing only her own $3,000 portion of appreciation was taxable income to her.
IssueFree
Whether the increase in the value of property during a donor's ownership is assessable as income against the donee.