Donald B. Jones & Mercy P. Jones v. Commissioner of Internal Revenue

This is a petition to review a decision of the Tax Court holding certain life insurance premiums paid by the taxpayer not to be deductible for income tax purposes under section 23(a) (2) of the Internal Revenue Code of 1939, 26 U.S.C. § 23(a) (2)-. The taxpayer had purchased for investment certain contingent remainder interests in two estates and in connection therewith had taken out the insurance policies in question upon the lives of the contingent remaindermen whose interests he had purchased. He did so to protect his investments in case the remaindermen should not survive the life…