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''United States v. Davis'', 〔 〕 is a federal income tax case argued before the United States Supreme Court in 1962. It is notable (and thus appears frequently in law school casebooks) for the following holding: *Husband's transfer of appreciated stock to his wife, pursuant to property settlement agreement executed prior to divorce, constituted a taxable event; the husband's taxable gain was measured by the stock's value at the date of its transfer. : *This applies the general rule, that a taxpayer recognizes a gain on the transfer of appreciated property in satisfaction of a legal obligation. In 1984, "having heard criticism of the Davis/Farid rule for many years," Congress overruled the main holding: Under §1041(a), no gain or loss shall be recognized by the transferor-spouse (or former spouse, but "only if the transfer is incident to divorce"); as a corollary, §1041(b) provides that transferor's basis shall carry over into the hands of the transferee-spouse. (Thus, for transfers between spouses, §1041(b) overrules the lower-of-cost-or-market rule for determining ''loss'' on subsequent sale of a gift, in §1015.) *While this statute overrules the specific holding of ''Davis'', it does not change the general rule—that "a taxpayer recognizes a gain on the transfer of appreciated property in satisfaction of a legal obligation." ==Facts== Pursuant to a separation agreement, the taxpayer's (ex-)wife agreed to relinquish any potential claims or marital rights, in exchange for which he transferred to her 1,000 shares of stock in DuPont. These shares had cost him $74,775.37, and had appreciated to $82,250 at the time of the transfer. The government argued that the appreciation should be included in the taxpayer's gross income, viewing the transfer of property as an exchange for the release of an independent legal obligation. The taxpayer argued that the appreciation should not count as gross income, since the transfer was more like a division of property between co-owners than a sale that resulted in gain. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「United States v. Davis (1962)」の詳細全文を読む スポンサード リンク
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