Phipps v. Commissioner
United States Board of Tax Appeals
In 1937 petitioner irrevocably assigned as gifts a single premium endowment insurance policy issued to her on her own life and two annual premium ordinary life insurance policies also issued to her on her own life. At the date of gift only the first annual premiums had been paid on the two ordinary life policies, and such policies had no cash surrender value until three years' full premiums had been paid.
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In 1937 petitioner irrevocably assigned as gifts a single premium endowment insurance policy issued to her on her own life and two annual premium ordinary life insurance policies also issued to her on her own life. At the date of gift only the first annual premiums had been paid on the two ordinary life policies, and such policies had no cash surrender value until three years' full premiums had been paid. Held, that the proper criterion for the valuation of the three policies for gift tax purposes was the cost of duplicating the policies at the date of gift rather than the cash surrender…
1Opinion of the Court
*791OPINION.
PIakRon :
The main question is whether for gift tax purposes the proper criterion for the valuation of the three policies irrevocably assigned by petitioner as gifts in the taxable year was the cost of duplicating the policies at the date of gift or the cash surrender value of the policies at such date. The question arises under section 506 of the Eevenue Act of 1932, which provides that for gift tax purposes the amount of a gift made in property is “the value thereof at the date of the gift.”
On her gift tax return for the taxable year each policy was returned by petitioner at a value…
2Cases cited4 opinions
- United States v. RyersonSupreme Court of the United States · 1941
- Guggenheim v. RasquinSupreme Court of the United States · 1941
- Powers v. CommissionerSupreme Court of the United States · 1941
- Brown v. BrownTennessee Supreme Court · 1849
3Cited by3 opinions
- Candler v. AllenDistrict Court, M.D. Georgia · 1942
- Lockhart v. CommissionerUnited States Board of Tax Appeals · 1942
- Phipps v. CommissionerUnited States Board of Tax Appeals · 1941