Estate of Horne v. Commissioner
United States Tax Court
Petitioner Amelia S. Horne was a major shareholder of a corporation and the named beneficiary of two insurance policies on the life of decedent, her husband, who was a shareholder and officer of the same corporation. The corporation paid all policy premiums and retained all the incidents of ownership of the policies, including the right to change the beneficiary designation and the right to the cash surrender values.
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Petitioner Amelia S. Horne was a major shareholder of a corporation and the named beneficiary of two insurance policies on the life of decedent, her husband, who was a shareholder and officer of the same corporation. The corporation paid all policy premiums and retained all the incidents of ownership of the policies, including the right to change the beneficiary designation and the right to the cash surrender values. The proceeds were paid by the insurance company to Mrs. Horne on the death of the insured. Held, the proceeds were not a taxable constructive dividend distribution by the…
1Opinion of the Court
OPINION
Featherston, Judge:
Respondent determined a deficiency in the amount of $23,928.53 in petitioners’ Federal income tax for 1970. One issue is left for decision: Whether any part of the proceeds of two life insurancé policies, owned by a corporation on the life of decedent J. E. Horne, which were paid to petitioner Amelia S. Horne, the named beneficiary, who owned approximately 41 percent of the stock of the corporation, is taxable as a dividend to her.
All the facts are stipulated.
Petitioners Amelia S. Horne (hereinafter Mrs. Horne) and Andrew Berry, executor of the Estate of J. E. Horne,…
2Cases cited5 opinions
- United States v. BessSupreme Court of the United States · 1958
- Casale v. CommissionerUnited States Tax Court · 1956
- Oreste Casale v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1957
- Francis H. W. Ducros and Phyllis A. Ducros v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1959
- Ducros v. CommissionerUnited States Tax Court · 1958
3Cited by1 opinion
- Estate of Horne v. CommissionerUnited States Tax Court · 1975