Davies v. Commissioner
United States Tax Court
Intrafamily transfer by a nonresident alien of real property situated in the United States in return for a note secured by a mortgage, the face amount of which was less than the fair market value of the property, held, on the facts, to constitute a gift of an interest in property situated in the United States; held, further, gifts of cash abroad sufficient to retire the note, made without prearrangement in a later year, were not gifts of property situated in the United…
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Intrafamily transfer by a nonresident alien of real property situated in the United States in return for a note secured by a mortgage, the face amount of which was less than the fair market value of the property, held, on the facts, to constitute a gift of an interest in property situated in the United States; held, further, gifts of cash abroad sufficient to retire the note, made without prearrangement in a later year, were not gifts of property situated in the United States.
1Opinion of the Court
OPINION
Oppee, Judge:
There is no dispute as to the making of a gift to petitioner by his father, nor as to the valuation of any gift that was made. The parties are in disagreement only as to what it was that constituted the subject matter of the gift, and, incidentally, perhaps as to the year of its occurrence. Ordinarily it would be of no consequence that a gift was in cash rather than property where the value is concededly the same. The issue arises here because the donor was a nonresident alien and if cash gifts were made in the country of his domicile they would not be subject to U.S. gift…
2Cases cited7 opinions
- Bartman v. CommissionerUnited States Tax Court · 1948
- Deal v. CommissionerUnited States Tax Court · 1958
- Story v. CommissionerUnited States Tax Court · 1962
- Tilles v. CommissionerUnited States Board of Tax Appeals · 1938
- Tilles v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1940
2 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Laughinghouse v. Comm'rUnited States Tax Court · 1983
- WilsonUnited States Tax Court · 1992
- Davies v. CommissionerUnited States Tax Court · 1963
- Laughinghouse v. Comm'rUnited States Tax Court · 1983