Estate of Kelley v. Commissioner
United States Tax Court
Held, transactions whereby J. W. Kelley and Margaret I. Kelley, in 1954, transferred to their children and grandchildren remainder interests in certain land in consideration of notes secured by vendor's liens were gifts within the meaning of sec. 1000, I.R.C. 1939, only to the extent that the value of the transferred interests exceeded the amount of the notes. Held, further, the additions to the tax determined under sec. 6651(a), I.R.C. 1954, are not applicable.
1Opinion of the Court
OPINION
Featherston, Judge:
In these consolidated proceedings, respondent determined the following deficiencies in the gift tax of petitioners:
Docket No. Year Deficiency
3236-73_ 1954 $8,869.65
3237-73_ 1954 11,441.62
Respondent also determined that additions to the tax were applicable under section 6651(a)1 in the amount of $2,876.51 in each case. Three issues must be resolved:
1. Were transfers in 1954 of remainder interests in land by petitioners to their children and grandchildren in exchange for vendor’s lien notes completed gifts within the meaning of section 1000 of the Internal Revenue Code…
2Cases cited6 opinions
- Commissioner of Internal Revenue v. Van VorstCourt of Appeals for the Ninth Circuit · 1932
- Story v. CommissionerUnited States Tax Court · 1962
- Van Vorst v. CommissionerUnited States Board of Tax Appeals · 1931
- Haygood v. CommissionerUnited States Tax Court · 1964
- Vaughan v. John Hancock Mut. Life Ins. Co.Court of Appeals of Texas · 1933
1 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Estate of Lydia G. Maxwell, Deceased First National Bank of Long Island Victor C. McCuaig Jr., Executors v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1993
- Estate of Strangi v. CommissionerUnited States Tax Court · 2000
- Cooper v. Internal Revenue ServiceDistrict Court, District of Columbia · 1977
- Laughinghouse v. Comm'rUnited States Tax Court · 1983
- Estate of Lockett v. Comm'rUnited States Tax Court · 2012
13 more not listed; retrieve them via the Exa API.