Lucey v. Commissioner
United States Tax Court
1. Decedent was a member of a Texas marital community. The husband was sole stockholder in a corporation. Held, under the facts, that the corporation was not a fiction and the alter ego of the husband, and that the Commissioner erred in including in the wife's gross estate one-half of the increase in the corporation's surplus during the marriage; held, further, that one-half of the increase during the marriage in the community indebtedness to the corporation is a deduction…
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1. Decedent was a member of a Texas marital community. The husband was sole stockholder in a corporation. Held, under the facts, that the corporation was not a fiction and the alter ego of the husband, and that the Commissioner erred in including in the wife's gross estate one-half of the increase in the corporation's surplus during the marriage; held, further, that one-half of the increase during the marriage in the community indebtedness to the corporation is a deduction from decedent's gross estate. 2. The husband, during the marriage, transferred certain oil leases to the corporation for…
1Opinion of the Court
OPINION.
Disney, Judge'.(1) The first question for our consideration is whether the Commissioner erred by including in the gross value of the decedent’s estate the amount of $142,971.01 representing one-half of the increase in the surplus account of the company attributable to ordinary earnings during the time the decedent was married to J. F. Lucey, as adjusted for the increase in the indebtedness of J. F. Lucey to the company.
We conclude from the respondent’s brief that he would have us disregard the corporate entity of the Lucey Petroleum Co. and hold that the increase in the surplus…
2Cases cited18 opinions
- Higgins v. SmithSupreme Court of the United States · 1940
- Burnet v. Commonwealth Improvement Co.Supreme Court of the United States · 1932
- Hopkins v. BaconSupreme Court of the United States · 1930
- Stramler v. CoeTexas Supreme Court · 1855
- Swearingen v. SwearingenCourt of Appeals of Texas · 1917
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3Cited by4 opinions
- Estate of Showers v. CommissionerUnited States Tax Court · 1950
- Stapf v. United StatesDistrict Court, N.D. Texas · 1960
- Estate of Showers v. CommissionerUnited States Tax Court · 1950
- Lucey v. CommissionerUnited States Tax Court · 1949