Hirst v. Commissioner
United States Tax Court
Transaction in which donee agreed to pay donor's gift taxes held not to result in realization of taxable income by donor measured by the excess of such gift taxes over donor's basis in the donated property. Richard H. Turner, 49 T.C. 356, affirmed 410 F.2d 752 (C.A. 6), followed; Joseph W. Johnson, Jr., 59 T.C. 791, affirmed 495 F. 2d 1079 (C.A. 6), certiorari denied 419 U.S. 1040, distinguished.
1Opinion of the Court
OPINION
Raum, Judge:
Whether a donor realizes taxable income upon payment of the resulting gift taxes by the donee or out of the transferred assets is a matter that has been the subject of a tortuous course of decision, characterized by subtleties and fine distinctions. If we accept the decisions in this field, it is our judgment that petitioner did not realize any taxable income as a consequence of the payment of the gift taxes by her son and daughter-in-law.
At the outset, there can be no reasonable dispute that liability for the gift tax is placed by statute primarily upon the donor, section…
2Cases cited10 opinions
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Johnson v. CommissionerUnited States Tax Court · 1973
- Turner v. CommissionerUnited States Tax Court · 1968
- Sheaffer v. CommissionerUnited States Tax Court · 1961
- Staley v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1943
5 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Guest v. CommissionerUnited States Tax Court · 1981
- Davis v. CommissionerUnited States Tax Court · 1980
- Edna Bennett Hirst v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1978
- Estate of Aaron Levine, Deceased, Harvey Levine, and Anna Levine, Surviving Wife v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1980
- Estate of Henry v. CommissionerUnited States Tax Court · 1978
19 more not listed; retrieve them via the Exa API.