Estate of Bell v. Commissioner
United States Tax Court
Held: 1. Where property is exchanged for a secured contract to pay an annuity, the recoverable "investment in the contract" as defined in sec. 72(c), I.R.C. 1954, is the fair market value of the property transferred. 2. Where the fair market value of the property transferred substantially exceeds the commuted value of the annuity, in the absence of any proof to the contrary, such excess is deemed to be a gift.
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Held: 1. Where property is exchanged for a secured contract to pay an annuity, the recoverable "investment in the contract" as defined in sec. 72(c), I.R.C. 1954, is the fair market value of the property transferred. 2. Where the fair market value of the property transferred substantially exceeds the commuted value of the annuity, in the absence of any proof to the contrary, such excess is deemed to be a gift. Under such circumstances, the taxpayer's "investment in the contract" is limited to the commuted value of the annuity. 3. The gain attributable to the excess or difference between the…
1Opinion of the Court
Estate of Lloyd G. Bell, Deceased, William Bell, Executor, and Grace Bell, Petitioners v. Commissioner of Internal Revenue, Respondent
Estate of Bell v. Commissioner
Docket No. 8176-71
United States Tax Court
60 T.C. 469; 1973 U.S. Tax Ct. LEXIS 101; 60 T.C. No. 52;
June 26, 1973, Filed
Decision will be entered under Rule 50.
Held: 1. Where property is exchanged for a secured contract to pay an annuity, the recoverable "investment in the contract" as defined in sec. 72(c), I.R.C. 1954, is the fair market value of the property transferred.
2. Where the fair market value of the property transferred…
Also in this document: Dissent.
2Cases cited32 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- Commissioner v. WemyssSupreme Court of the United States · 1945
- Johnston v. CommissionerUnited States Tax Court · 1950
- Agar v. OrdaNew York Court of Appeals · 1934
- McMurtry v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1953
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