Horst v. Commissioner
United States Board of Tax Appeals
The owner of foreign state, municipal, and industrial coupon bonds, clipped therefrom and delivered before maturity to another, as a gift, negotiable interest coupons having a maturity within the taxable year. Payments were received on the coupons by the donee within the taxable year. The donor was the owner of the bonds throughout the taxable year and kept his books and made his income tax returns on the cash receipts and disbursements basis.
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The owner of foreign state, municipal, and industrial coupon bonds, clipped therefrom and delivered before maturity to another, as a gift, negotiable interest coupons having a maturity within the taxable year. Payments were received on the coupons by the donee within the taxable year. The donor was the owner of the bonds throughout the taxable year and kept his books and made his income tax returns on the cash receipts and disbursements basis. Held, that the amounts received by the donee on the coupons were taxable income to the donor.
1Opinion of the Court
*759OPINION.
Hill:
There is only one question for determination, namely, whether the amounts collected in the respective years 1934 and 1935 on the coupons involved are taxable as income to petitioner. We think they are. It is true that we were reversed on a similar point in our decision in Julius Rosenwald, 12 B. T. A. 350, by the United States Circuit Court of Appeals for the Seventh Circuit, 33 Fed. (2d) 423. The court assigned as the basis for such reversal that the severance and delivery of the coupons before maturity constituted a completed gift and hence the coupons were not taxable to the…
2Cases cited4 opinions
- Corliss v. BowersSupreme Court of the United States · 1930
- Reinecke v. Northern Trust Co.Supreme Court of the United States · 1929
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
- Saltonstall v. SaltonstallSupreme Court of the United States · 1928
3Cited by8 opinions
- South Lake Farms, Inc. v. CommissionerUnited States Tax Court · 1961
- Knipe v. CommissionerUnited States Tax Court · 1965
- Dunham v. CommissionerUnited States Tax Court · 1961
- Dunham v. CommissionerUnited States Tax Court · 1961
- Helvering v. HorstSupreme Court of the United States · 1940
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