Moseley v. Commissioner
United States Tax Court
Petitioner received a distribution under the "special reserve" provision of a life insurance contract which provided, in addition, for a $ 5,000 life insurance benefit. Under the policy, a portion of the premiums paid during the second through fifth years of the policy was credited to a special reserve account. The amount of the special reserve account was combined with amounts paid by other policyholders in a fund which was invested in common stocks.
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Petitioner received a distribution under the "special reserve" provision of a life insurance contract which provided, in addition, for a $ 5,000 life insurance benefit. Under the policy, a portion of the premiums paid during the second through fifth years of the policy was credited to a special reserve account. The amount of the special reserve account was combined with amounts paid by other policyholders in a fund which was invested in common stocks. In the 20th year of the policy, a distribution was paid on each policy if the following conditions were met: the insured was then living, the…
1Opinion of the Court
Featherston, Judge:
Respondent alleges that there is a deficiency in the amount of $1,434.24 in petitioners’ income tax for 1972.1 Due to concessions made by petitioners, the only issue for decision is whether a distribution of $3,561.95 made to petitioner Ned W. Moseley under the “special reserve” provision of an insurance contract was, as respondent contends, ordinary income to the extent the distribution exceeded the total premiums of $384.80 credited to the “special reserve” account or, as petitioner argues, a nontaxable refund since the distribution was less than the total premiums paid…
2Cases cited9 opinions
- Fidelity-Philadelphia Trust Co. v. SmithSupreme Court of the United States · 1958
- Helvering v. MeredithCourt of Appeals for the Eighth Circuit · 1944
- Edwin A. Gallun and Jane W. Gallun (Formerly Husband and Wife) v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1964
- Estate of Montgomery v. Comm'rUnited States Tax Court · 1971
- Estate of Lafayette Montgomery, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1972
4 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Massachusetts Mutual Life Insurance v. United StatesUnited States Court of Federal Claims · 2012
- National Sav. Life Ins. Co. v. CommissionerUnited States Tax Court · 1985
- Moseley v. CommissionerUnited States Tax Court · 1979
- National Sav. Life Ins. Co. v. CommissionerUnited States Tax Court · 1985