Harrison v. Commissioner
United States Tax Court
1. Gift Tax. -- In ascertaining the net value of gifts to a trust for gift tax purposes, wherein the trustee was required to pay the future income tax of the settlor-beneficiary, the gross value of the gift may be reduced by the present worth of future income tax payments. 2. Gift Tax. -- In determining the net value of gifts to a trust, wherein the trustee agreed to pay the gift tax, the settlor excluded the gift tax incurred in the transfer.
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1. Gift Tax. -- In ascertaining the net value of gifts to a trust for gift tax purposes, wherein the trustee was required to pay the future income tax of the settlor-beneficiary, the gross value of the gift may be reduced by the present worth of future income tax payments. 2. Gift Tax. -- In determining the net value of gifts to a trust, wherein the trustee agreed to pay the gift tax, the settlor excluded the gift tax incurred in the transfer. Held, the gift tax may be deducted from the gross value of the gifts in determining the net value of the transfer subject to gift tax.
1Opinion of the Court
OPINION.
Johnson, Judge:
In the first issue, petitioner alleges respondent erred in disallowing the exclusion of the present worth of future income tax payments from the gross value of gifts in determining the net value of petitioner’s gifts subject to gift tax. Respondent contends that the present value of petitioner’s right to have her future income tax paid by the trustee may not be deducted from the gross value of the gifts to the trusts, since the value of the right could not be ascertained by recognized actuarial methods.
By the provision in Trust No. 1, that the trustee “shall also pay…
2Cases cited9 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Helvering v. F. & R. Lazarus & Co.Supreme Court of the United States · 1939
- Robinette v. HelveringSupreme Court of the United States · 1943
- Commissioner of Internal Revenue v. MaresiCourt of Appeals for the Second Circuit · 1946
- Scofield, Collector of Internal Revenue v. GreerCourt of Appeals for the Fifth Circuit · 1950
4 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Estate of Craft v. CommissionerUnited States Tax Court · 1977
- Estate of Piper v. CommissionerUnited States Tax Court · 1979
- Turner v. CommissionerUnited States Tax Court · 1968
- Murray v. United StatesUnited States Court of Claims · 1982
- McCord v. Comm'rUnited States Tax Court · 2003
35 more not listed; retrieve them via the Exa API.