Early v. Commissioner
United States Tax Court
Petitioners acquired a joint life interest in a percentage of the income from an estate trust in exchange for their transfer to the trust of certain shares of stock transferred to them by decedent outside her probate estate. Held, the amortized cost of acquiring the life estate is deductible under sec. 167(a)(2), I.R.C. 1954. Held, further, that portion of the amortized cost allocable to tax-exempt interest income is not disallowed as a deduction by sec. 265, I.R.C. 1954.
1Opinion of the Court
opinion
Eespondent argues that the receipt by petitioners of the life estate pursuant to the settlement with the estate was tantamount, under the rationale of Lyeth v. Hoey, 305 U.S. 188 (1938), to an acquisition by “gift, bequest, or inheritance,” precluding amortization of its value by application of section 273, I.E.C. 1954.1 In addition, respondent obliquely questions wh.eth.er Rose intended a gift to petitioners of the El Paso stock. Petitioners view the settlement as a taxable exchange of property which resulted in no gain or loss because the basis of the property transferred by…
2Cases cited19 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Lyeth v. HoeySupreme Court of the United States · 1938
- Helvering v. OwensSupreme Court of the United States · 1939
- Bell v. Harrison. Bell v. United StatesCourt of Appeals for the Seventh Circuit · 1954
- Harris Trust & Savings Bank v. HillAppellate Court of Illinois · 1961
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3Cited by19 opinions
- Estate of Christ v. Comm'rUnited States Tax Court · 1970
- Gordon v. CommissionerUnited States Tax Court · 1985
- Allen M. Early and Jeannette B. Early v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Elrick v. CommissionerUnited States Tax Court · 1971
- Spruance v. CommissionerUnited States Tax Court · 1973
14 more not listed; retrieve them via the Exa API.