Cooper v. United States
280 U.S. 409 (1930)

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U.S. Supreme Court

Cooper v. United States, 280 U.S. 409 (1930)

Cooper v. United States

No. 93

Argued January 15, 1930

Decided February 24, 1930

280 U.S. 409

Syllabus

The Revenue Act of November 23, 1921, effective from the beginning of that calendar year, provides, § 202(a)(2), that, in ascertaining the gain from a sale of property acquired after February 28, 1913, the basis shall be the cost, and that, in case of property acquired by gift after December 31, 1920, "the basis shall be the same as that which it would have in the hands of the donor or the last preceding owner by whom it was not acquired by gift." In November, 1921, A gave to B shares which A had bought in 1918 and which had increased in value. B sold them at that increased value within a week, and was taxed on the basis of the difference between the price paid by A and the price received by B.

Held:

1. The statute intends to reach the transaction retroactively. P. 280 U. S. 411.

2. As so applied, it is not invalid under the due process clause of the Fifth Amendment. Id.

Affirmed.

Certiorari, post, p. 537, to review a judgment of the Court of Claims rejecting a claim for recovery of money exacted as an income tax.

Page 280 U. S. 410

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