Stern v. Commissioner
United States Tax Court
1. Income -- Realization -- Gift Before. -- Former owner of shares held not taxable on gain from liquidation where he made a valid and complete gift of the shares prior to the liquidation. 2. Family Partnership -- Trusts Included. -- The definition of a partnership in section 3797 includes a partnership in which trusts were limited partners and the distributive shares of the trusts are not taxable to the grantor, the general partner, where the trusts contributed valuable…
Read the full summary
1. Income -- Realization -- Gift Before. -- Former owner of shares held not taxable on gain from liquidation where he made a valid and complete gift of the shares prior to the liquidation. 2. Family Partnership -- Trusts Included. -- The definition of a partnership in section 3797 includes a partnership in which trusts were limited partners and the distributive shares of the trusts are not taxable to the grantor, the general partner, where the trusts contributed valuable property which was an income producing factor.
1Opinion of the Court
OPINION.
Murdock. Judge:
The first question is whether the petitioner made gifts of 670 shares of Clark Linen Co. stock. The petitioner intended to make gifts of the shares and he actually transferred them to the four trusts. The trusts received certificates for the shares. The gifts were permanent, with no interest retained by the petitioner. All of the elements of a completed gift were present. There was no reason why he could not give those shares to the trusts. He did every important thing that could be done to give the shares to the trusts. A person may make a complete and valid gift to a…
2Cases cited5 opinions
- Cook v. CommissionerUnited States Tax Court · 1945
- Blumberg v. CommissionerUnited States Tax Court · 1948
- Theurkauf v. CommissionerUnited States Tax Court · 1949
- Fickert v. CommissionerUnited States Tax Court · 1950
- Merz v. CommissionerUnited States Tax Court · 1949
3Cited by48 opinions
- Palmer v. CommissionerUnited States Tax Court · 1974
- Guest v. CommissionerUnited States Tax Court · 1981
- Winton v. KelmDistrict Court, D. Minnesota · 1954
- Toor v. Westover. Toor v. WestoverCourt of Appeals for the Ninth Circuit · 1953
- Estate of Applestein v. CommissionerUnited States Tax Court · 1983
43 more not listed; retrieve them via the Exa API.