Gunnison v. Commissioner
United States Tax Court
Petitioner, as a named secondary beneficiary under qualified employee trusts (within the meaning of sec. 401(a) of the Internal Revenue Code of 1954), received lump-sum distributions therefrom after the death of the primary beneficiary. Held, such distributions were not made "on account of the employee's death" within the meaning of sec. 402(a)(2), I.R.C. 1954, and capital gains treatment is not allowed.
1Opinion of the Court
OPINION
Richard received distributions from two employee trusts which were qualified employee trusts under section 401(a). Respondent argues that the amounts which he received from each trust are taxable as ordinary income under section 402(a)(1),2 and do not qualify for capital gains treatment under section 402(a)(2), which, in part, states:(2) Capital Gains Treatment for Certain Distributions. — In the case of an employees’ trust described in section 401(a), which is exempt from tax under section 501(a), if the total distributidns payable with respect to any employee are paid to the…
2Cases cited4 opinions
- Glinske v. CommissionerUnited States Tax Court · 1951
- Fry v. CommissionerUnited States Tax Court · 1952
- Fry's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1953
- Gordon v. CommissionerUnited States Tax Court · 1956
3Cited by9 opinions
- Richard N. Gunnison and Vivian E. Gunnison v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1972
- Benbow v. CommissionerUnited States Tax Court · 1984
- Sarmir v. CommissionerUnited States Tax Court · 1976
- Estate of Stefanowski v. CommissionerUnited States Tax Court · 1974
- Benbow v. CommissionerUnited States Tax Court · 1984
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