Legallet v. Commissioner
United States Board of Tax Appeals
Two partners provided by contract that insurance upon the life of each, payable to his wife or children, the premiums of which were paid by the partnership and charged to the individuals, should be applied upon the purchase price to be paid by the survivor for the interest in the partnership owned by the first deceased. Right to change beneficiary was reserved.
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Two partners provided by contract that insurance upon the life of each, payable to his wife or children, the premiums of which were paid by the partnership and charged to the individuals, should be applied upon the purchase price to be paid by the survivor for the interest in the partnership owned by the first deceased. Right to change beneficiary was reserved. Held, that insurance proceeds received by the wife of the first to die and applied upon such purchase price were not received by the surviving partner, nor paid by him, and may not be included in the cost basis of the partnership…
1Opinion of the Court
*295OPINION.
Disney:
This proceeding involves income tax for the calendar year 1935 in the amount of $4,680.04. The question presented is as to the proper cost basis to petitioner of an interest in a partnership, purchased by him upon decease of his partner, pursuant to an agreement between the partners.
The greater portion of the facts was stipulated, including documents referred to and received in evidence pursuant to the stipulation. The facts so stipulated are found by us, and will be referred to only so far as necessary to consideration. They may be summarized as follows:
Petitioner, resident of…
2Cited by3 opinions
- Mushro v. CommissionerUnited States Tax Court · 1968
- Legallet v. CommissionerUnited States Board of Tax Appeals · 1940
- Mushro v. CommissionerUnited States Tax Court · 1968