Mushro v. Commissioner
United States Tax Court
The three partners of a partnership had a buy-sell agreement to take effect upon the death of the first to die. They funded the agreement with insurance policies, owned by the partnership, on the life of each partner. Each partner's wife was the named beneficiary of the policy on his life.
Read the full summary
The three partners of a partnership had a buy-sell agreement to take effect upon the death of the first to die. They funded the agreement with insurance policies, owned by the partnership, on the life of each partner. Each partner's wife was the named beneficiary of the policy on his life. Held: When the first partner died, the realities of the situation were that the surviving partners received the insurance proceeds from the policy on the deceased partner's life and then paid them to the deceased partner's wife in exchange for the interest in the partnership to which she was entitled…
1Opinion of the Court
Fat, Judge:
Respondent determined deficiencies in the petitioners’ income taxes as follows:
Docket No. Petitioner Taxable Deficiency year
2101-66.Victor G. and Luella Mushro. 1961
2102-66.Louis A. Mushro and Anita A. Mushro-... 1961 13,403.76
Certain issues raised in the pleadings were disposed of by concessions of the parties. The issues left for decision 'are (1) what are the tax bases of the interests which petitioners Victor G. Mushro and Louis A. Mushro held in the Algiers Motel partnership and (2) what is the total tax basis of the assets which the Algiers Motel partnership sold during its…
2Cases cited2 opinions
- Orr Mills v. CommissionerUnited States Tax Court · 1958
- Legallet v. CommissionerUnited States Board of Tax Appeals · 1940
3Cited by3 opinions
- Fedders Corp. v. CommissionerUnited States Tax Court · 1979
- Commercial Capital Corp. v. CommissionerUnited States Tax Court · 1968
- Mushro v. CommissionerUnited States Tax Court · 1968