Cohen v. Commissioner
United States Tax Court
Petitioner, in form, assigned three life insurance policies upon his life to a third party who, in accordance with an agreement between them, surrendered the policies, received the cash surrender value plus accumulated dividends and interest thereon left on deposit, and paid the same to petitioner who thereupon paid the third party for his services.
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Petitioner, in form, assigned three life insurance policies upon his life to a third party who, in accordance with an agreement between them, surrendered the policies, received the cash surrender value plus accumulated dividends and interest thereon left on deposit, and paid the same to petitioner who thereupon paid the third party for his services. Held, the transaction between petitioner and the third party did not constitute a bona fide sale of the insurance policies but did constitute his personal surrender thereof through the third party as his agent. Held, further, periodic increments…
1Opinion of the Court
Withe y, Judge:
Respondent has determined a deficiency in the income tax of petitioners for the year 1958 in the amount of $23,100.99. Petitioner claims an overpayment in his income tax for 1958.
The issues presented for our decision are (1) whether gain realized by petitioner Theodore H. Cohen upon the transfer of certain life insurance endowment policies is taxable as ordinary income or long-term capital gain; and (2) if such gain was taxable as ordinary income, whether that part of the gain represented by the annual increments in the cash surrender value and interest on deposited dividends…
2Cases cited8 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Ross v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1948
- Griffith v. CommissionerUnited States Tax Court · 1961
- Jones v. CommissionerUnited States Tax Court · 1962
- Roff v. CommissionerUnited States Tax Court · 1961
3 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
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- Tandy Corporation v. United StatesCourt of Appeals for the Fifth Circuit · 1980
- Eastern Service Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1981
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