Usher v. Commissioner
United States Tax Court
The petitioner Myrtis C. Usher entered into a binding contract to sell certain stock to a third party and then, prior to the actual consummation of the sale, transferred such stock, subject to the contract to sell, to a trust set up by her husband for the benefit of their two sons, the trust agreeing to carry out the sale, receive the proceeds, and make annuity payments to the petitioner for life.
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The petitioner Myrtis C. Usher entered into a binding contract to sell certain stock to a third party and then, prior to the actual consummation of the sale, transferred such stock, subject to the contract to sell, to a trust set up by her husband for the benefit of their two sons, the trust agreeing to carry out the sale, receive the proceeds, and make annuity payments to the petitioner for life. Held, that in substance the sale was made by the petitioner through the trust as a conduit and that the petitioner is taxable in the year of sale upon the full amount of the gain realized upon the…
1Opinion of the Court
OPINION
Atkins, Judge:
The respondent determined a deficiency in income tax for the taxable year 1960 in the amount of $179,519.58.
The parties having reached agreement with respect to one of the issues, the only issue remaining for decision is whether the transfer in 1960 by the petitioner, Myrtis C. Usher, of stock in Sarong, Inc., to a trust pursuant to an agreement wherein the trust agreed to pay her an annuity for her life, constituted the purchase of a private annuity, with the result that her recognizable income in 1960 upon the transaction is limited to the payments received in such…
2Cases cited8 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. HorstSupreme Court of the United States · 1940
- Helvering v. EubankSupreme Court of the United States · 1941
- Bassett v. CommissionerUnited States Board of Tax Appeals · 1935
3 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Hallowell v. CommissionerUnited States Tax Court · 1971
- Malkan v. Comm'rUnited States Tax Court · 1970
- Estate of Applestein v. CommissionerUnited States Tax Court · 1983
- Martin v. MacHizDistrict Court, D. Maryland · 1966
- First Nat'l Industries, Inc. v. CommissionerUnited States Tax Court · 1967
6 more not listed; retrieve them via the Exa API.