Hodge v. Commissioner
United States Tax Court
A died intestate leaving an estate of over $ 500,000. He had three heirs, one of whom was his son, B. Before A's death B had borrowed $ 80,000 from A and had given him notes in this amount and collateral security. Prior to A's death B was insolvent.
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A died intestate leaving an estate of over $ 500,000. He had three heirs, one of whom was his son, B. Before A's death B had borrowed $ 80,000 from A and had given him notes in this amount and collateral security. Prior to A's death B was insolvent. After A's death his administrators and the Commissioner of Internal Revenue agreed to a valuation of B's notes, for estate tax purposes, at a value placed upon the collateral of $ 28,190. In a partial distribution to the heirs made by A's administrators, B was given $ 167,949 which included his own notes at their full face value. At the same time,…
1Opinion of the Court
OPINION.
Keen, Judge:
The primary question which we have for determination is whether or not petitioners realized taxable income in 1936 upon the distribution to one of the heirs of the estate, as a part of his distributive share thereof, of certain notes of the face value of $80,000 which he had given to decedent in 1931 and 1932 as evidence of loans in that amount.
The notes had been valued for estate tax purposes at $28,190, and were distributed to the heir on the basis of their face value. Respondent contends the estate realized taxable gain to the extent of $58,810, the difference between…
2Cited by5 opinions
- Walker v. CommissionerUnited States Tax Court · 1944
- Harper v. CommissionerUnited States Tax Court · 1948
- Harper v. CommissionerUnited States Tax Court · 1948
- Hodge v. CommissionerUnited States Tax Court · 1943
- Walker v. CommissionerUnited States Tax Court · 1944