Crown v. Commissioner
United States Tax Court
Petitioner was a one-third partner in Areljay Co., Not Incorporated. Areljay made substantial non-interest-bearing demand or open account loans to 24 trusts established for various relatives, most of whom were children. Held, petitioner is not subject to the gift tax on his proportionate share of the partnership's outstanding loans because the making of non-interest-bearing loans under these circumstances is not a taxable event.
1Opinion of the Court
OPINION
Dawson, Chief Judge:
Respondent determined a deficiency of $46,084.54 in petitioner’s Federal gift tax for the year 1967.
The issue presented for decision is whether interest-free loans to relatives of the lender (or trusts for the benefit of such relatives) give rise to taxable gifts from the lender to the borrowers to the extent of the value of the use of the funds loaned; and, if so, what is the proper measure of the amount of such gifts.
All of the facts were stipulated by the parties. The stipulation of facts and the exhibits attached thereto are incorporated herein by this…
2Cases cited12 opinions
- Commissioner v. DubersteinSupreme Court of the United States · 1960
- New York Trust Co. v. EisnerSupreme Court of the United States · 1921
- Harris v. CommissionerSupreme Court of the United States · 1950
- Dean v. CommissionerUnited States Tax Court · 1961
- Joseph Lupowitz Sons, Inc. v. CommissionerCourt of Appeals for the Third Circuit · 1974
7 more not listed; retrieve them via the Exa API.
3Cited by34 opinions
- Dickman v. CommissionerSupreme Court of the United States · 1984
- Frazee v. CommissionerUnited States Tax Court · 1992
- Lester Crown v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1978
- La Fargue v. CommissionerUnited States Tax Court · 1979
- Young v. CommissionerCourt of Appeals for the Eleventh Circuit · 1991
29 more not listed; retrieve them via the Exa API.