John M. Ruch v. Commissioner of Internal Revenue

WISDOM, Circuit Judge:

This appeal requires a determination whether the transfer the Commissioner of Internal Revenue questions in this case qualifies as a donation inter vivos under Louisiana law. The Tax Court held that it did not, and sustained the Commissioner’s determination that the taxpayer was not entitled to deductions under section 213(a) of the Internal Revenue Code of 1954 [26 U.S.C. § 213(a) (1982)] for his mother’s medical expenses paid for with the transferred funds during the years 1975, 1976, and 1977. We reverse.

I

At the time this suit was brought, the taxpayer, John M. Ruch,…