Blum v. Higgins

FRANK, Circuit Judge.

1. Since the taxpayer did not receive any of the proceeds of the insurance policy in 1936 and since he was on a cash basis, he realized no taxable gain on the policies in that year unless the doctrine of constructive receipt is applicable. The taxpayer is considered in constructive receipt of income if it is available to him “without any substantial limitation or restriction as to the time or manner of payment or condition upon which payment is made.” Treas. Reg. 94, Art. 42-2.

2. The taxpayer contends that the constructive receipt doctrine is inapplicable here because the…