Estate of Maxwell v. Commissioner
United States Tax Court
Decedent transferred her personal residence to her son, who was her only heir, and his wife in 1984, and continued to reside therein until her death in 1986. The transfer took the form of a sale for $ 270,000, of which decedent simultaneously forgave $ 20,000, and received a $ 250,000 mortgage for the remainder. In each of the 2 following years she forgave an additional $ 20,000 of the mortgage obligation, and in her will she forgave the remaining indebtedness.
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Decedent transferred her personal residence to her son, who was her only heir, and his wife in 1984, and continued to reside therein until her death in 1986. The transfer took the form of a sale for $ 270,000, of which decedent simultaneously forgave $ 20,000, and received a $ 250,000 mortgage for the remainder. In each of the 2 following years she forgave an additional $ 20,000 of the mortgage obligation, and in her will she forgave the remaining indebtedness. The son and his wife never made any payments of principal on the mortgage, but did pay monthly interest thereon. At the time of the…
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined a deficiency in estate tax against the estate of Lydia G. Maxwell (decedent) in the amount of $141,991. Decedent was born on June 2, 1902, and resided in Old Brookville, New York, at the time of her death on July 30, 1986. At the time the petition was filed, First National Bank of Long Island had its legal address in Woodbury, New York, and Victor C. McCuaig, Jr., had his legal address in Glen Cove, New York. The case was submitted on the basis of a stipulation of facts and exhibits. The parties have stipulated to the resolution of some of the…
2Cases cited12 opinions
- Waddell v. CommissionerUnited States Tax Court · 1986
- Warner R. Waddell and Jeanette I. Waddell v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1988
- Estate of Daniel McNichol Deceased, Ellen McNichol Evangelista and Joseph G. McNichol Executors v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1959
- Borchers v. CommissionerUnited States Tax Court · 1990
- Richard J. Borchers Jane E. Borchers v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1991
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3Cited by15 opinions
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- Estate of Lockett v. Comm'rUnited States Tax Court · 2012
- Estate of McLendon v. CommissionerUnited States Tax Court · 1993
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