Landau v. Commissioner
United States Tax Court
In 1941 petitioner, a resident alien, was a creditor of a South African firm. The Emergency Finance Regulations imposed by the Union of South Africa in 1939 prevented petitioner from withdrawing funds against this indebtedness. In May 1941 petitioner executed a power of attorney, pursuant to which his attorney in Johannesburg, South Africa, on December 22, 1941, transferred 27,500 pounds of the indebtedness in trust for the benefit of petitioner's children and grandchildren.
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In 1941 petitioner, a resident alien, was a creditor of a South African firm. The Emergency Finance Regulations imposed by the Union of South Africa in 1939 prevented petitioner from withdrawing funds against this indebtedness. In May 1941 petitioner executed a power of attorney, pursuant to which his attorney in Johannesburg, South Africa, on December 22, 1941, transferred 27,500 pounds of the indebtedness in trust for the benefit of petitioner's children and grandchildren. Petitioner valued the gift for tax purposes at $ 2 per pound. Respondent valued the gift at $ 3.98 per pound, the…
1Opinion of the Court
OPINION.
Arnold, Judge:
The parties are agreed that petitioner made a taxable gift; the dispute between them is over the amount of the gift. Section 1005 of the Internal Revenue Code provides that “If the gift is made in property, the value thereof at the date of the gift shall be considered the amount of the gift.” The subject matter of the gift here was blocked South African pounds in South Africa. The petitioner valued the pounds at $2 per pound, due to the governmental restrictions placed on South African currency. The respondent valued the pounds at the official rate of exchange, $3.98 per…
2Cases cited1 opinion
- Burnet v. BrooksSupreme Court of the United States · 1933
3Cited by27 opinions
- Durovic v. CommissionerUnited States Tax Court · 1970
- Marko Durovic v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1973
- Fry v. CommissionerUnited States Tax Court · 1947
- Foundation Co. v. CommissionerUnited States Tax Court · 1950
- Cooper v. CommissionerUnited States Tax Court · 1950
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