Rheinstrom v. Commissioner
United States Board of Tax Appeals
Petitioner created a trust and transferred to it certain property the income of which was to be distributed in the following proportions: 50 percent to her four children in equal amounts, 40 percent to petitioner, and 10 percent to be retained by the trustees in a reserve fund from which the trustees in their absolute discretion could also make payments to petitioner.
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Petitioner created a trust and transferred to it certain property the income of which was to be distributed in the following proportions: 50 percent to her four children in equal amounts, 40 percent to petitioner, and 10 percent to be retained by the trustees in a reserve fund from which the trustees in their absolute discretion could also make payments to petitioner. Held, under authority of Seymour H. Knox,36 B.T.A. 630, petitioner made only one gift and was entitled to an exclusion of $5,000 from value of property given; held, further, petitioner is entitled to deduct the commuted value of…
1Opinion of the Court
*312OPINION.
KeRn:
The first question involved in this proceeding is whether, in calculating the value of the property which forms the corpus of the gift made by petitioner to the trust established by her and subject to tax under the Revenue Act of 1932, as amended by the Revenue Acts of 1934 and 1935, there should be excluded the sum of $20,000, as petitioner contends, or, as respondent contends, the sum of $5,000. The pertinent section of the act, section 504 of the Revenue Act of 1932, is set out in the margin.1 The contention of the petitioner is based upon the argument that since there are…
2Cases cited1 opinion
- Salomon v. State Tax Comm'n of NYSupreme Court of the United States · 1929
3Cited by3 opinions
- Pelzer v. United StatesUnited States Court of Claims · 1940
- Rheinstrom v. CommissionerUnited States Board of Tax Appeals · 1938
- Rubinstein v. CommissionerUnited States Board of Tax Appeals · 1940