Legallet v. Commissioner
United States Board of Tax Appeals
Two partners provided by contract that insurance upon the life of each, payable to his wife or children, the premiums of which were paid by the partnership and charged to the individuals, should be applied upon the purchase price to be paid by the survivor for the interest in the partnership owned by the first deceased. Right to change beneficiary was reserved.
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Two partners provided by contract that insurance upon the life of each, payable to his wife or children, the premiums of which were paid by the partnership and charged to the individuals, should be applied upon the purchase price to be paid by the survivor for the interest in the partnership owned by the first deceased. Right to change beneficiary was reserved. Held, that insurance proceeds received by the wife of the first to die and applied upon such purchase price were not received by the surviving partner, nor paid by him, and may not be included in the cost basis of the partnership…
1Opinion of the Court
PAUL LEGALLET, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Legallet v. Commissioner
Docket No. 92520.
United States Board of Tax Appeals
41 B.T.A. 294; 1940 BTA LEXIS 1204;
February 7, 1940, Promulgated
Two partners provided by contract that insurance upon the life of each, payable to his wife or children, the premiums of which were paid by the partnership and charged to the individuals, should be applied upon the purchase price to be paid by the survivor for the interest in the partnership owned by the first deceased. Right to change beneficiary was reserved. Held, that insurance…
2Cases cited3 opinions
- Mitchell v. CommissionerUnited States Board of Tax Appeals · 1938
- Dobrzensky v. CommissionerUnited States Board of Tax Appeals · 1936
- Legallet v. CommissionerUnited States Board of Tax Appeals · 1940