Blackburn v. Commissioner
United States Tax Court
In 1947, petitioner transferred to her two children real property in the city of Amarillo, Texas, having a fair market value of $ 245,000. She received from her children in part consideration for the transfer a note in the face amount of $ 172,527.65, secured by a mortgage upon the property. The note bore interest at the rate of 2 1/4 per cent per annum and was payable in monthly installments of $ 600, payable over a period of 34 years and 6 months.
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In 1947, petitioner transferred to her two children real property in the city of Amarillo, Texas, having a fair market value of $ 245,000. She received from her children in part consideration for the transfer a note in the face amount of $ 172,527.65, secured by a mortgage upon the property. The note bore interest at the rate of 2 1/4 per cent per annum and was payable in monthly installments of $ 600, payable over a period of 34 years and 6 months. The usual rate of interest charged on real estate mortgage loans in Amarillo at the time of this transaction was 4 per cent per annum. Held, the…
1Opinion of the Court
OPINION.
Black, Judge:
Originally the Commissioner determined a deficiency in petitioner’s gift tax for the year 1947 of $23,360.21. He based his determination on a holding that the gifts which .petitioner made to her two children on December 31, 1947, were of future interests in property subject to a life estate reserved in petitioner and that petitioner was not entitled to any exclusions of $3,000 each. The Commissioner now concedes that he was in error in this determination and that whatever gifts there were to the two children in the transfer of the property in question were gifts of…
2Cited by15 opinions
- Frazee v. CommissionerUnited States Tax Court · 1992
- Eleanor M. Ballard v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1988
- Charles Schusterman and Lynn N. Schusterman v. United StatesCourt of Appeals for the Tenth Circuit · 1995
- Esther C. Dickman, Estate of Paul B. Dickman, Deceased, G. Wendell Smith, Personal Representative v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1983
- Ballard v. CommissionerUnited States Tax Court · 1987
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