Furstenberg v. Commissioner
United States Tax Court
From Jan. 1, 1975, to Dec. 22, 1975, petitioner was a U.S. citizen. On Dec. 23, 1975, petitioner adopted Austrian citizenship, thereby losing her U.S. citizenship. During 1975, petitioner received distributions from two complex trusts of which she was a beneficiary.
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From Jan. 1, 1975, to Dec. 22, 1975, petitioner was a U.S. citizen. On Dec. 23, 1975, petitioner adopted Austrian citizenship, thereby losing her U.S. citizenship. During 1975, petitioner received distributions from two complex trusts of which she was a beneficiary. Held, petitioner did not have tax avoidance as one of her principal purposes in expatriating; thus her income is not taxable under sec. 877, I.R.C. 1954. Held, further, petitioner is taxable at the graduated rates applicable to U.S. citizens on an accumulation distribution from a complex testamentary trust received by her before…
1Opinion of the Court
Featherston, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes as set forth below:
Year Deficiency
1975 . $595,017
1976 . 1,476,718
1977 . 3,207,600
After concessions, the issues for decision are as follows:(1) Whether petitioner’s loss of her U.S. citizenship on December 23, 1975, had as one of its principal purposes the avoidance of U.S. taxes within the meaning of section 877(a);1(2) Whether, even if we find that petitioner had tax avoidance as one of her principal purposes in expatriating, the French Tax Treaty, rather than section 877, governs the taxation of…
2Cases cited25 opinions
- Malat v. RiddellSupreme Court of the United States · 1966
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Burton-Sutton Oil Co. v. CommissionerSupreme Court of the United States · 1946
- Achiro v. CommissionerUnited States Tax Court · 1981
- Cook v. TaitSupreme Court of the United States · 1924
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3Cited by6 opinions
- Halliburton Co. v. CommissionerUnited States Tax Court · 1989
- Olson v. CommissionerUnited States Tax Court · 1967
- Furstenberg v. CommissionerUnited States Tax Court · 1984
- Halliburton Co. v. CommissionerUnited States Tax Court · 1989
- Maria G. Leslie v. CommissionerUnited States Tax Court · 2016
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