Estate of Arbury v. Commissioner
United States Tax Court
P made a series of interest-free demand loans to two of her children. Following the Supreme Court's decision in Dickman v. Commissioner, 465 U.S. 330 (1984), P filed amended gift tax returns in which she valued the gift element of the interest-free loans by using the maximum rate of interest which she could have legally charged her children under a Michigan usury statute.
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P made a series of interest-free demand loans to two of her children. Following the Supreme Court's decision in Dickman v. Commissioner, 465 U.S. 330 (1984), P filed amended gift tax returns in which she valued the gift element of the interest-free loans by using the maximum rate of interest which she could have legally charged her children under a Michigan usury statute. Held, the proper valuation of the gift element of an interest-free demand loan does not depend on how much interest the lender could have legally charged to a particular borrower; rather, the value of the gift element is…
1Opinion of the Court
OPINION
RUWE, Judge:
Respondent determined deficiencies in petitioners’ liability for Federal gift tax as follows:
Petitioner Taxable period ending Deficiency
Estate of Anderson Arbury Mar. 31, 1981 $16,932.33
docket No. 39313-87 June 30, 1981 17,077.27
Sept. 30, 1981 17,357.22
Estate of Anderson Arbury Dec. 31, 1981 69,068.61
docket No. 8683-87 Dec. 31, 1982 49,296.93
Dec. 31, 1983 219,519.60
Dec. 31, 1984 22,877.84
Dorothy D. Arbury Mar. 31, 1981 16,932.33
docket No. 39312-87 June 30, 1981 17,077.27
Sept. 30, 1981 17,357.22
Dorothy D. Arbury Dec. 31, 1981 69,068.05
docket No. 8684-87 Dec. 31, 1982…
2Cases cited13 opinions
- Anniston Manufacturing Co. v. DavisSupreme Court of the United States · 1937
- Dickman v. CommissionerSupreme Court of the United States · 1984
- The Estate of Mary Frances Smith Bright, Deceased, by H. R. Bright, Independent v. United StatesCourt of Appeals for the Fifth Circuit · 1981
- Estate of Andrews v. CommissionerUnited States Tax Court · 1982
- Minahan v. CommissionerUnited States Tax Court · 1987
8 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Albertson's, Inc. v. CommissionerUnited States Tax Court · 1990
- Melvin S. Cohen, Eileen D. Cohen and Edith Phillips v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1990
- Medina v. CommissionerUnited States Tax Court · 1999
- Albertson's, Inc. v. CommissionerUnited States Tax Court · 1990
- Estate of Arbury v. CommissionerUnited States Tax Court · 1989
2 more not listed; retrieve them via the Exa API.