Estate of Stefanowski v. Commissioner
United States Tax Court
A qualified profit-sharing trust was terminated as of Jan. 2, 1971. The employee-participant died on Feb. 23, 1971. His share of the assets of the trust was distributed to his designated beneficiary on Mar. 25, 1971, and included an element of appreciation in the value of the trust assets subsequent to the date of death.
Read the full summary
A qualified profit-sharing trust was terminated as of Jan. 2, 1971. The employee-participant died on Feb. 23, 1971. His share of the assets of the trust was distributed to his designated beneficiary on Mar. 25, 1971, and included an element of appreciation in the value of the trust assets subsequent to the date of death. Held, the distribution was made on account of the termination of the trust and not on account of the employee-participant's death and is therefore not entitled to capital gains treatment under sec. 402(a) (2) or to the death benefit exclusion under sec. 101, I.R.C. 1954.
1Opinion of the Court
Tannenwald, Judge:
Respondent determined a deficiency of $1,739.90 in petitioners’ Federal income tax for 1971. The issues for decision are (1) whether the lump-sum distribution which petitioner June Stefanowski received from an employees’ profit-sharing trust qualifies for capital gains treatment under section 402(a) (2)1 and (2) whether any amount of such distribution is excludable from gross income as an employee’s death benefit under section 101(b).
FINDINGS OF FACT
The facts of the case have been stipulated and are incorporated herein by this reference.
June Stefanowski (hereinafter…
2Cases cited9 opinions
- United States v. Ophelia Johnson and Ophelia R. Johnson, as Under the Last Will and Testament of Clifford L. Johnson, DeceasedCourt of Appeals for the Fifth Circuit · 1964
- Miller v. CommissionerUnited States Tax Court · 1954
- Judkins v. CommissionerUnited States Tax Court · 1959
- Patty R. Smith v. United StatesCourt of Appeals for the Sixth Circuit · 1972
- Schlegel v. CommissionerUnited States Tax Court · 1966
4 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Blyler v. CommissionerUnited States Tax Court · 1977
- Sarmir v. CommissionerUnited States Tax Court · 1976
- Cooper v. CommissionerUnited States Tax Court · 1975
- Blyler v. CommissionerUnited States Tax Court · 1977
- Estate of Stefanowski v. CommissionerUnited States Tax Court · 1974
1 more not listed; retrieve them via the Exa API.