- 8 -
sold at a loss. See, e.g., section 1015(a), which provides that
the basis of property acquired by gift is the same in the hands
of the donee as it was in the hands of the donor, except that, if
such basis exceeds the fair market value of the property at the
time of the gift, then, for purposes of determining loss, the
basis shall be such fair market value. In general, the basis of
property received by bequest is the fair market value of the
property on the date of death of the decedent. See sec.
1014(a)(1). The basis of property received by purchase is its
cost. See sec. 1012.
For the reasons that follow, we do not find petitioner’s
wife’s testimony as to the origin of the securities in
petitioner’s hands to be credible, and we give it no weight.
First, her testimony was self-serving (in that we assume, as
petitioner’s wife, she has an economic stake in the outcome of
this case). We need not accept self-serving testimony, even if
unopposed. Fleischer v. Commissioner, 403 F.2d 403, 406 (2d Cir.
1968), affg. T.C. Memo. 1967-85; see also Tokarski v.
Commissioner, 87 T.C. 74, 77 (1986) (“Under all the
circumstances, we are not required to accept the self-serving
testimony of petitioner or that of his mother as gospel.”).
Second, with respect to the securities that she testified were
received by bequest from petitioner’s grandmother, her testimony
involved two crucial facts: one, the fact of the grandmother’s
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011