Spruance v. Commissioner
United States Tax Court
Under the terms of a 1955 separation agreement between petitioner and his wife, petitioner was to transfer appreciated stock in trust; the trust was to be irrevocable; income from the stock was to go in part to the wife for her support and in part to the children while minors, the remainder to the children after the death of the surviving former spouse. The subsequent decree of divorce approved, incorporated, and directed compliance with and performance of the agreement.
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Under the terms of a 1955 separation agreement between petitioner and his wife, petitioner was to transfer appreciated stock in trust; the trust was to be irrevocable; income from the stock was to go in part to the wife for her support and in part to the children while minors, the remainder to the children after the death of the surviving former spouse. The subsequent decree of divorce approved, incorporated, and directed compliance with and performance of the agreement. The agreement itself survived and was carried out. At the time of the transfer, one child was an adult. Petitioner did not…
1Opinion of the Court
DawsoN, Judge:
These two cases were consolidated for trial, briefing, and opinion. In docket No. 2501-69 the respondent determined deficiencies in the trust’s Federal income taxes as follows:
Deficiency $2, 918. 54 36,133. 75 49, 223. 50 Taxable year 1962 _ 1964 _ 1965 _
In docket No. 4013-70 respondent determined a deficiency in Federal gift tax against petitioner Preston Lea Spruance and an addition to tax as follows:
Addition to tax
Taxable year Deficiency sec. 6651(a) [1]
1966 _$93, 348. 21 $23,337. 05
We must decide four issues, namely:(1) Whether Preston Lea Spruance, petitioner in docket No.…
2Cases cited35 opinions
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Stone v. WhiteSupreme Court of the United States · 1937
- United States v. DavisSupreme Court of the United States · 1962
- Commissioner v. WemyssSupreme Court of the United States · 1945
- United States v. E. I. Du Pont De Nemours & Co.Supreme Court of the United States · 1961
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3Cited by11 opinions
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- Estate of Campbell v. United StatesDistrict Court, D. New Jersey · 1977
- Estate of Robinson v. CommissionerUnited States Tax Court · 1975
- St. Joseph Bank & Trust Co. v. United StatesCourt of Appeals for the Seventh Circuit · 1983
- HARTLEY v. COMMISSIONERUnited States Tax Court · 1977
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