The question of the taxability of post-marital property settlements involving the transfer of appreciated stock has been answered by our highest tribunal. But the ramifications of its opinion are likely to extend considerably beyond what one might expect from only a cursory reading of this case. Through Davis v. United States, the Supreme Court has once again, as in the early thirties, applied the revenue laws in a manner which results in geographical discrimination. The ensuing disparity, as well as the intent of Congress to eliminate tax inequality between community property and common-law jurisdictions, has been minimized in order to achieve a result of questionable compatibility with the laws of one state. The Court has, moreover, applied a method of valuation which, although workable to an uncertain extent in particular situations, defies equitable application in circumstances where excessive emotions and tensions predominate.
Bruce B. Graves,
Transfers of Stock Pursuant to Post-Marital Property Settlements—A Taxable "Exchange" in Common-Law Jurisdictions,
42 Neb. L. Rev. 857
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