Ink v. Commissioner
United States Board of Tax Appeals
Decedent, by his will, gave petitioner an annuity of $24,000 per year and made it a specific charge against certain real estate devised to others. His executors were directed to hold his personal estate intact for five years and if rentals of the real estate securing the annuity were insufficient to meet the payments, to supplement such security by transfers from the personal estate. The rentals in question were sufficient to meet the annuity payments.
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Decedent, by his will, gave petitioner an annuity of $24,000 per year and made it a specific charge against certain real estate devised to others. His executors were directed to hold his personal estate intact for five years and if rentals of the real estate securing the annuity were insufficient to meet the payments, to supplement such security by transfers from the personal estate. The rentals in question were sufficient to meet the annuity payments. The five-year period elapsed during the taxable year, after $4,000 of the total payments to be made petitioner for that year had been made.…
1Opinion of the Court
*849OPINION.
Leech:
Our inquiry is resolved by the correct legal characterization of the contested receipts. If those receipts aré bequests, they are not taxable income to petitioner. Kevenue Act of. 1928, sec. 22 (b) (3)1
Respondent now concedes the $4,000 payment received from the executor was a bequest, but denies that status to the $20,000 received from the lessees of the theatre property. He cites Helvering v. Pardee, 290 U. S. 365; Bridgeport-City Trust Co., Trustee, 32 B. T. A. 1181; Bay Trust Co., Trustee, 34 B. T. A. 233; Arthur U. Crosby et al., Executors, 34 B. T. A. 433, as supporting…
2Cases cited2 opinions
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Burnet v. WhitehouseSupreme Court of the United States · 1931
3Cited by3 opinions
- Commercial Trust Co. v. KohlNew Jersey Court of Chancery · 1942
- Congdon v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1938
- Ink v. CommissionerUnited States Board of Tax Appeals · 1937