212 Corp. v. Commissioner
United States Tax Court
1. H and W transferred appreciated real property to a corporation in exchange for an annuity. Held, the recoverable "investment in the contract," as defined in sec. 72(c), I.R.C. 1954, is the fair market value of the property transferred; the fair market value of such property determined. 2. Held, the gain resulting from the transfer of such properties is taxable to the transferors in the year of the exchange.
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1. H and W transferred appreciated real property to a corporation in exchange for an annuity. Held, the recoverable "investment in the contract," as defined in sec. 72(c), I.R.C. 1954, is the fair market value of the property transferred; the fair market value of such property determined. 2. Held, the gain resulting from the transfer of such properties is taxable to the transferors in the year of the exchange. Estate of Bell v. Commissioner, 60 T.C. 469 (1973), followed. 3. Held, the bases and useful lives of the properties transferred determined for purposes of computing allowable…
1Opinion of the Court
Quealy, Judge:
The Commissioner determined the following deficiencies in the petitioners’ Federal income taxes:
Docket No. Year Deficiency
8683-74 .1968 $334.00
1969 667.00
8684-74 .1968 1,709.49
1969 3,488.97
By an amendment to his answer, the Commissioner claimed increased deficiencies as follows:
Docket No. Year Deficiency
8683-74 .1968 $714.00
1969 1,429.00
8684-74 .1968 2,128.50
1969 4,349.98
In his amendment to the answer in docket No. 8684-74, the Commissioner claimed, in the alternative, increased deficiencies of $13,062.26 for 1968 and $3,637.36 for 1969.
The issues for decision are: (1) The…
2Cases cited17 opinions
- United States v. DavisSupreme Court of the United States · 1962
- Lorenzo Alvary v. United StatesCourt of Appeals for the Second Circuit · 1962
- Guggenheim v. HelveringCourt of Appeals for the Second Circuit · 1941
- Lazarus v. CommissionerUnited States Tax Court · 1972
- John C. W. Dix and Caroline W. Dix v. Commissioner of Internal Revenue, George E. Dix v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1968
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3Cited by23 opinions
- UFE, Inc. v. CommissionerUnited States Tax Court · 1989
- La Fargue v. CommissionerUnited States Tax Court · 1979
- Esther Lafargue v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1982
- Concord Control, Inc. v. CommissionerUnited States Tax Court · 1982
- Nestle Holdings v. CommissionerUnited States Tax Court · 1995
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