Keitel v. Commissioner
United States Board of Tax Appeals
Where one purchases an interest in property determinable upon the death or remarriage of the grantor and agrees to pay therefor a certain sum each month so long as the grantor lives or does not remarry, held that the amount paid each year may be deductible under section 214(a)(8) of the Revenue Act of 1921, but, based upon the facts obtaining and there being no proof of the value of the life estate acquired, the deduction to which petitioner may be entitled can not be…
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Where one purchases an interest in property determinable upon the death or remarriage of the grantor and agrees to pay therefor a certain sum each month so long as the grantor lives or does not remarry, held that the amount paid each year may be deductible under section 214(a)(8) of the Revenue Act of 1921, but, based upon the facts obtaining and there being no proof of the value of the life estate acquired, the deduction to which petitioner may be entitled can not be determined.
1Opinion of the Court
*906OPINION.
Milliken :
The case has been stipulated and briefed with no disagreement between respective counsel concerning the actual payments made to the mother by petitioner. The sale and transfer by Caroline Keitel of her interest under the will of her husband in the partnership in consideration of the payment to her by petitioner of the sum of $200 per month, so long as she lived and remained testator’s widow, constituted a capital transaction. See Thomas H. Mastin, 7 B. T. A. 72, affirmed in Mastin v. Commissioner of Internal Revenue, 28 Fed. (2d) 748, and Robert L. Scott, 9 B. T. A. 955,…
2Cases cited2 opinions
- Landers Investment Company v. BrownSupreme Court of Missouri · 1923
- State ex rel. Farley v. WelchMissouri Court of Appeals · 1914
3Cited by16 opinions
- Bell v. Harrison. Bell v. United StatesCourt of Appeals for the Seventh Circuit · 1954
- Early v. CommissionerUnited States Tax Court · 1969
- Lomas Santa Fe, Inc. v. CommissionerUnited States Tax Court · 1980
- Elrick v. CommissionerUnited States Tax Court · 1971
- Manufacturers Hanover Trust Co. v. CommissionerCourt of Appeals for the Second Circuit · 1970
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