Connell v. Commissioner
United States Tax Court
Money transferred by decedent to one of his sons as trustee for himself and 9 brothers and sisters with the understanding that it was to be returned to the decedent in exchange for promissory notes payable respectively to each of decedent's 10 children, held, not completed gifts.
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Money transferred by decedent to one of his sons as trustee for himself and 9 brothers and sisters with the understanding that it was to be returned to the decedent in exchange for promissory notes payable respectively to each of decedent's 10 children, held, not completed gifts. Consequently the loans represented by 19 of the 20 notes so given and not paid off prior to decedent's death, held not to be indebtedness contracted bona fide and for an adequate and full consideration in money or money's worth so as to be deductible from decedent's gross estate under section 812 (b) (3), Internal…
1Opinion of the Court
OPINION.
Bruce, Judge:
Respondent disallowed deduction of the alleged debts of decedent (and interest thereon) represented by the notes in issue, explaining, “the liability was not contracted bona fide and for an adequate and full consideration in money or money’s worth” and “that the transaction which brought into existence the notes here claimed as a deduction was a transfer within the meaning of section 811 (c) of the Internal Revenue Code.”
The respondent on brief makes no argument with respect to section 811 (c), and it is our opinion that the matter may be disposed of without reference…
2Cases cited21 opinions
- Burnet v. WellsSupreme Court of the United States · 1933
- Johnson v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1936
- Gannon v. . McGuireNew York Court of Appeals · 1899
- Union Mutual Life Insurance v. BroderickCalifornia Supreme Court · 1925
- Crocker v. HallCalifornia Supreme Court · 1908
16 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Connell v. CommissionerUnited States Tax Court · 1953
- Estate of Flandreau v. CommissionerUnited States Tax Court · 1992