Estate of D'Ambrosio v. Commissioner
United States Tax Court
D transferred her remainder interest in stock for consideration equal to the value of that interest, and retained an income interest in the stock for life. Following D's death, E did not include the stock in D's gross estate for Federal estate tax purposes. E argues that the stock is excludable from D's gross estate under the bona fide sale exception of sec. 2036(a), I.R.C., given the fact that D transferred the remainder interest for its fair market value.
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D transferred her remainder interest in stock for consideration equal to the value of that interest, and retained an income interest in the stock for life. Following D's death, E did not include the stock in D's gross estate for Federal estate tax purposes. E argues that the stock is excludable from D's gross estate under the bona fide sale exception of sec. 2036(a), I.R.C., given the fact that D transferred the remainder interest for its fair market value. Held: D's gross estate includes the value of the stock at D's death, less the amount that D received for the remainder interest. The bona…
1Opinion of the Court
OPINION
Laro, Judge:
The parties submitted this case to the Court without trial. Rule 122. The Estate of Rose D’Ambrosio, Deceased (hereinafter decedent’s estate), Vita D’Ambrosio, Executrix (hereinafter the executrix), petitioned the Court to redetermine respondent’s determination of an $842,391 deficiency in the Federal estate tax of decedent’s estate. We must decide whether decedent’s gross estate for Federal estate tax purposes includes the value of 470 shares of preferred stock in which decedent retained an income interest for her life, after she transferred the remainder interest in the…
2Cases cited20 opinions
- Helvering v. HallockSupreme Court of the United States · 1940
- United States v. Southwestern Cable Co.Supreme Court of the United States · 1968
- Commissioner v. Estate of ChurchSupreme Court of the United States · 1949
- Commissioner v. WemyssSupreme Court of the United States · 1945
- Rainwater v. United StatesSupreme Court of the United States · 1958
15 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- John Michael Wheeler, Independent of the Estate of Elmore K. Melton, Jr. v. United StatesCourt of Appeals for the Fifth Circuit · 1997
- Estate of Rose D'ambrosio, Deceased, Vita D'Ambrosio v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Third Circuit · 1996
- Steinberg v. CommissionerUnited States Tax Court · 2013
- Estate Rose v. Commissioner IRSCourt of Appeals for the Third Circuit · 1996
- Estate of Bongard v. Comm'rUnited States Tax Court · 2005
10 more not listed; retrieve them via the Exa API.