Klein v. Commissioner
United States Board of Tax Appeals
1. Held that payments made by the petitioners to their sisters pursuant to an annuity contract made subsequent to their father's death did not constitute distributions, through the petitioners, of the estate of the father of the petitioners. Held, further, that the payments were capital expenditures and are not deductible from gross income of the petitioners in the years paid.
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1. Held that payments made by the petitioners to their sisters pursuant to an annuity contract made subsequent to their father's death did not constitute distributions, through the petitioners, of the estate of the father of the petitioners. Held, further, that the payments were capital expenditures and are not deductible from gross income of the petitioners in the years paid. Held, further, that no portion of each payment constituted interest which is deductible under section 214(a)(2), Acts of 1924 and 1926. 2. One of the petitioners, in order to obtain a loan, procured insurance upon his…
1Opinion of the Court
*916OPINION.
McMahon:
The first contention of the petitioners is that the amounts of $15,000 and $7,500 paid in the years 1924 and 1925, respectively, by them to their sisters pursuant to the provisions of the agreement of April 19, 1913, set forth in our findings of fact, should be excluded from their net taxable income for those years. Each petitioner paid one half of such amount in each year. The petitioners contend that these payments constituted distributions of the estate of their father and that under the contract of April 19, 1913, they became, in equity, the trustees for their sisters in…
2Cases cited6 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Phillips v. CommissionerSupreme Court of the United States · 1931
- Saleno v. City of NeoshoSupreme Court of Missouri · 1895
- Lowery v. FullerMissouri Court of Appeals · 1926
- Bolden v. JensenU.S. Circuit Court for the District of Washington · 1895
1 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Rodney v. Comm'rUnited States Tax Court · 1969
- Carbine v. CommissionerUnited States Tax Court · 1984
- John D. Carbine and Eleanor W. Carbine v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1985
- John C. W. Dix and Caroline W. Dix v. Commissioner of Internal Revenue, George E. Dix v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1968
- Dix v. CommissionerUnited States Tax Court · 1966
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