Derby v. Commissioner
United States Tax Court
1. Real property held as tenants by the entirety, in the purchase of which the wife made no contribution, was conveyed to a trust under the terms of which the settlors reserved power to manage and control the property, collect the income therefrom, and amend or revoke the trust during their joint lives.
Read the full summary
1. Real property held as tenants by the entirety, in the purchase of which the wife made no contribution, was conveyed to a trust under the terms of which the settlors reserved power to manage and control the property, collect the income therefrom, and amend or revoke the trust during their joint lives. Held, that the value of the property is includible in gross estate under the provisions of section 811 (e), Internal Revenue Code. 2. Respondent's determination of a penalty for failure to file a timely return sustained because of lack of proof of error.
1Opinion of the Court
OPINION.
Johnson, Judge:
The six parcels of real property involved in the first issue, the value of which is not in dispute, were acquired by the decedent and his wife as tenants by the entirety. The petitioner concedes that inasmuch as the surviving spouse contributed nothing to the purchase of the property, the full value thereof would have been includible in decedent’s gross estate if the tenancy had not been previously severed. It contends here that the effect of the conveyance to the trustee and the trust declared on the property was to convert, by the joint action of the owners, the…
2Cases cited12 opinions
- Helvering v. HallockSupreme Court of the United States · 1940
- Reinecke v. Northern Trust Co.Supreme Court of the United States · 1929
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
- Porter v. CommissionerSupreme Court of the United States · 1933
- Wakefield v. WakefieldSuperior Court of Pennsylvania · 1942
7 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Hatfield v. CommissionerUnited States Tax Court · 1977
- Richard H. Black, Deceased, Phyllis M. Black, Personal Representative v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1985
- Breckon v. State Tax CommissionUtah Supreme Court · 1979
- Tauer v. CommissionerUnited States Tax Court · 1979
- Estate of May v. CommissionerUnited States Tax Court · 1978
7 more not listed; retrieve them via the Exa API.