Rand v. Commissioner
United States Board of Tax Appeals
1. Where neither terms of trust nor state law expressly forbid the use of trust income for payment of life insurance premiums, held, petitioner taxable under section 167(a)(3), Revenue Act of 1934, on trust income used in taxable year to pay life insurance premiums on policies of insurance on his own life; held, further, such tax liability limited to amount of premiums paid or payable out of trust income upon existent policies.
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1. Where neither terms of trust nor state law expressly forbid the use of trust income for payment of life insurance premiums, held, petitioner taxable under section 167(a)(3), Revenue Act of 1934, on trust income used in taxable year to pay life insurance premiums on policies of insurance on his own life; held, further, such tax liability limited to amount of premiums paid or payable out of trust income upon existent policies. Following Genevieve F. Moore,39 B.T.A. 808. 2. Book figures for corporation's assets in prior year, giving substantial value to corporation's stock, held, of no…
1Opinion of the Court
*237OPINION.
Offer:
The first issue presented is whether petitioner is taxable on the income of six separate trusts created for the benefit of his children. Respondent bases his determination on section 167 (a) (3), Revenue Act of 1934, which provides:
SEO. 1G7. INCOME POR BENEFIT OF GRANTOR.(a) Where any part of the income of a trust—
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(3') Is, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income may he, applied to the payment of premiums upon policies of insurance on the life of the grantor * * *;
the…
2Cases cited2 opinions
- Burnet v. WellsSupreme Court of the United States · 1933
- Cornet v. CornetSupreme Court of Missouri · 1916
3Cited by18 opinions
- Steadman v. Comm'rUnited States Tax Court · 1968
- Frazier v. CommissionerUnited States Tax Court · 1975
- Datamation Services, Inc. v. CommissionerUnited States Tax Court · 1976
- Garner v. CommissionerUnited States Tax Court · 1991
- Delk v. CommissionerUnited States Tax Court · 1995
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