Hindes v. Commissioner
United States Board of Tax Appeals
A established trusts for benefit of his relatives and, as trust property, transferred common stock to trustees upon gifts certain. Thereafter, upon A's request but without consideration. the beneficiaries authorized the trustees and donor to make any changes in the trusts which they desired.
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A established trusts for benefit of his relatives and, as trust property, transferred common stock to trustees upon gifts certain. Thereafter, upon A's request but without consideration. the beneficiaries authorized the trustees and donor to make any changes in the trusts which they desired. The trustees transferred the common stock to the donor, who thereupon executed new declarations of trust, some of which were upon substantially different terms and transferred certain preferred stock to the trustees for trust property. Held, the transactions were not taxable exchanges of stock.
1Opinion of the Court
OPINION.
Goodeioh :
Respondent has determined deficiencies in income tax against petitioner as a trustee and as executor under the will of Isaac E. Emerson as follows:
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All of the deficiencies arise upon respondent’s determination that the return to Emerson of certain common stock, which he had previously transferred to the trustee, followed by the transfer by Emerson to the trustee of certain preferred stock, constituted a taxable exchange. Since a transaction identical except as to the number of shares occurred in each case, the determination of its character will serve to dispose…
2Cases cited1 opinion
- Smoot v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by2 opinions
- Frank Trust of 1927 v. CommissionerUnited States Board of Tax Appeals · 1941
- Hindes v. CommissionerUnited States Board of Tax Appeals · 1933