Dibblee

This case involves a deficiency in income taxes in the sum of $1,690.30 for the year 1928. The Board of Tax Appeals redetermined the deficiency and affirmed the determination of the Commissioner, wherein it was held that petitioner acquired the securities in question at the date of the distribution and not at the time of her mother’s death. Petitioner contends that the Board erred in holding that the two-year period contemplated by the “capital net gain” provision of section 101 of the Revenue Act of 1928 (26 USCA § 2101) commenced to run from the date of distribution to her of the securities she had acquired by general bequest under the will of her mother, and not from the date of her mother’s death; so the sole question is whether the gain on the sale of the securities received by petitioner as a general legatee under her mother’s will, less than two years after distribution and more than two years after the death of the testatrix, constitutes capital net gain or ordinary income.

Petitioner is a citizen and resident of California. Her mother died testate on *618 March 28, 1926, and disposed of her property by will, leaving all of it to four of her children in equal shares. The…