Smith v. Commissioner
United States Tax Court
Petitioners, executors and residuary legatees of their father's estate, distributed to themselves as residuary legatees the assets of the estate on December 31, 1937, without settlement of certain gift and estate taxes due by the estate to the United States. Thereafter, petitioners paid these deficiencies, together with interest thereon.
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Petitioners, executors and residuary legatees of their father's estate, distributed to themselves as residuary legatees the assets of the estate on December 31, 1937, without settlement of certain gift and estate taxes due by the estate to the United States. Thereafter, petitioners paid these deficiencies, together with interest thereon. Held, that, under section 23 (b), I. R. C., the interest on the deficiencies which accrued subsequent to the distribution of the assets to petitioners is deductible by them in computing their income taxes.
1Opinion of the Court
OPINION.
Artjndell, Judge-.
The sole issue is whether the petitioners are entitled to a deduction from their gross income for the amount of interest which accrued on the estate and gift tax deficiencies after distribution of the remaining assets of the estate to themselves. The applicable statute is section 23 (b), Internal Revenue Code.
Much has been written with respect to the deductibility of interest payments of the character here considered and the law is not settled. Various cases posing different factual situations, but a common question, are directly in point. Since the decision in…
2Cases cited2 opinions
- Koppers Co. v. CommissionerUnited States Tax Court · 1944
- GREEN v. COMMISSIONERUnited States Tax Court · 1944
3Cited by11 opinions
- Lawrence v. CommissionerUnited States Tax Court · 1957
- Timken v. CommissionerUnited States Tax Court · 1946
- W. D. Haden Co. v. CommissionerUnited States Tax Court · 1946
- Armour v. CommissionerUnited States Tax Court · 1946
- Koontz v. CommissionerUnited States Tax Court · 1957
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