Guaranty Trust Co. v. Commissioner
United States Board of Tax Appeals
In 1919, petitioner's decedent exchanged leaseholds for an annuity contract under the terms of which the said decedent was entitled to receive $100,000 per year during the remainder of his life. In 1921 and 1922 he received $100,000 and $99,999.96, respectively, in accordance with the terms of said agreement.
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In 1919, petitioner's decedent exchanged leaseholds for an annuity contract under the terms of which the said decedent was entitled to receive $100,000 per year during the remainder of his life. In 1921 and 1922 he received $100,000 and $99,999.96, respectively, in accordance with the terms of said agreement. Held, that the exchange in 1919 constituted a closed and completed transaction and that in determining whether a gain was realized in 1921 and 1922 on account of the annuity payments then received, the capital value of the contract in 1919 must be taken into consideration as an amount…
1Opinion of the Court
*23OPINION.
Littleton
¡■‘Under the motion granted for severance of issues, the questions to be considered at this time are the following, which are contended for by the petitioner and denied by the Commissioner:(a) That annuity payments in the amounts of $100,000 and $99,999.96 received by petitioner’s decedent during 1921 and 1922, respectively, from the Guaranty Trust Company of New York, constituted the return of capital and may not be included in taxable net income for the reason that the sale by petitioner’s decedent to said Guaranty Trust Company of a certain leasehold in consideration of an…
2Cases cited1 opinion
- Simpson v. United StatesSupreme Court of the United States · 1920
3Cited by8 opinions
- Rose Gelb, Victor Edwin Gelb, Manufacturers Trust Company, Executors, of the Estate of Harry Gelb v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
- Commissioner of Internal Revenue v. Olmsted Incorporated Life AgencyCourt of Appeals for the Eighth Circuit · 1962
- Steinbach Kresge Co. v. SturgessDistrict Court, D. New Jersey · 1940
- Ware v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1947
- Louis v. CommissionerUnited States Board of Tax Appeals · 1934
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