Chastain v. Commissioner
United States Tax Court
At the time of his death (1964) D owned two mortgage notes upon the collection of which he would have realized long-term capital gains of $ 632,402.84 and $ 150,506.49, respectively. Among the bequests made in D's will were: (1) A $ 1 million bequest to D's son, T, which was to include the two mortgage notes, and (2) a residuary gift to a charitable foundation, out of which the estate tax was to be paid.
Read the full summary
At the time of his death (1964) D owned two mortgage notes upon the collection of which he would have realized long-term capital gains of $ 632,402.84 and $ 150,506.49, respectively. Among the bequests made in D's will were: (1) A $ 1 million bequest to D's son, T, which was to include the two mortgage notes, and (2) a residuary gift to a charitable foundation, out of which the estate tax was to be paid. In 1966 T received payment on one of the notes, and reported a $ 632,402.84 long-term capital gain in his income tax return for that year in respect of a decedent, pursuant to sec. 691(a) of…
1Opinion of the Court
opinion
Naum, Judge:
Tbe Commissioner determined a $162,463.32 deficiency in petitioner’s 1966 income tax. Pursuant to section 691(a) of tbe 1954 Code petitioner bad reported a $632,402.84 long-term capital gain in bis 1966 income tax return as income in respect of a decedent, and be bad claimed a deduction of $439,856.99 under section 691(c) for estate taxes attributable to tbat item. Although tbe Commissioner treated section 691(c) as applicable, he determined, "upon the basis of bis computations under tbat section, tbat petitioner was not entitled to any deduction thereunder. Tbe sole matter…
2Cases cited8 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Nat Harrison Assoc., Inc. v. CommissionerUnited States Tax Court · 1964
- Davidson v. CommissionerSupreme Court of the United States · 1938
- Isabel Collier Read, as of the Estate of Miles Collier, Deceased v. United StatesCourt of Appeals for the Fifth Circuit · 1963
- Edna Rice Meissner, Dorothy M. Freeman, and Edwin B. Meissner, Jr., Executors of the Estate of Edwin B. Meissner, Deceased v. The United StatesUnited States Court of Claims · 1966
3 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Estate of Kincaid v. CommissionerUnited States Tax Court · 1985
- Estate of Cherry v. United StatesDistrict Court, W.D. Kentucky · 2001
- Chastain v. CommissionerUnited States Tax Court · 1972
- Estate of Kincaid v. CommissionerUnited States Tax Court · 1985