Hall v. Commissioner
United States Tax Court
Deduction -- Nonbusiness Expense -- Premiums Paid on Insurance. -- The petitioner held insurance on the life of a debtor of petitioner's estate to secure payment of the debt principal. The debtor was not obligated to reimburse petitioner for its payments of premiums. Petitioner paid the premiums out of the principal of the trust.
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Deduction -- Nonbusiness Expense -- Premiums Paid on Insurance. -- The petitioner held insurance on the life of a debtor of petitioner's estate to secure payment of the debt principal. The debtor was not obligated to reimburse petitioner for its payments of premiums. Petitioner paid the premiums out of the principal of the trust. Under the facts, held, that (1) the estate was not engaged in a business, and the insurance premium expense is not deductible under section 23 (a) (1) (A); and that (2) the payment of insurance premiums is not a nonbusiness expense under section 23 (a) (2) and is not…
1Opinion of the Court
OPINION.
IIarron, Judge:
The petitioner contends that the payments of premiums for the insurance on the life of Snedeker are deductible either under section 23 (a) (1) (A) of the Code, as business expense, or under section 23 (a) (2), as nonbusiness expense. The respondent contends that the insurance premium expense is not deductible under either section.
It is held that the executor and trustee of Hall’s estate was not engaged in the conduct of a business on behalf of the beneficiaries of the estate. United States v. Pyne, 313 U. S. 127 (1941); Higgins v. Commissioner (C. A. 2, 1940), 111 F. 2d…
Also in this document: Dissent.
2Cases cited12 opinions
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- United States v. PyneSupreme Court of the United States · 1941
- Leslie v. CommissionerUnited States Tax Court · 1946
- City Bank Farmers Trust Co. v. HelveringSupreme Court of the United States · 1941
7 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Hall v. CommissionerUnited States Tax Court · 1951