Estate of Hendry v. Commissioner
United States Tax Court
Decedent transferred a 655-acre farm on which he was conducting a citrus and cattle business to his wife in 1948. Decedent and his wife moved onto the property as their residence in 1954. Thereafter decedent built a house on the property with his own funds.
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Decedent transferred a 655-acre farm on which he was conducting a citrus and cattle business to his wife in 1948. Decedent and his wife moved onto the property as their residence in 1954. Thereafter decedent built a house on the property with his own funds. Decedent and his wife continued to occupy the property as their residence and decedent continued to operate the citrus and cattle business on the property until his death in 1968. Held, the value of the property is includable in decedent's estate under sec. 2036(a)(1), I.R.C. 1954.
1Opinion of the Court
Dkennen, Judge:
Respondent determined a deficiency of $155,-563.13 in the Federal estate tax liability of the Estate of Francis M. Hendry. The only issues for decision are: (1) Whether decedent retained such an interest in a 655-acre residence-ranch which he transferred to his wife in 1948 as to make the value thereof includable in his gross estate under section 2036(a) (1), X.R.C. 1954; and (2) whether the balance due, in the amount of $155,000, on three notes upon which the decedent and his wife were each personally liable, can be deducted by the estate as a debt of the decedent under…
2Cases cited14 opinions
- Commissioner v. Estate of ChurchSupreme Court of the United States · 1949
- Estate of Daniel McNichol Deceased, Ellen McNichol Evangelista and Joseph G. McNichol Executors v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1959
- Jane C. Guynn, of the Estate of Vena E. Calvert, Deceased v. United StatesCourt of Appeals for the Fourth Circuit · 1971
- McNichol v. CommissionerUnited States Tax Court · 1958
- Estate of Maria M. Coxe Skinner, Deceased, Neil McFee Skinner and Girard Trust Corn Exchange Bank, Executors v. United StatesCourt of Appeals for the Third Circuit · 1963
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- Estate of Rosenberg v. CommissionerUnited States Tax Court · 1986
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