Crocker v. Commissioner
United States Tax Court
Gain, predominantly composed of previously earned investment income, realized on transfer for consideration to third person of insurance policies on petitioner's life, held ordinary income notwithstanding transaction may have incorporated sale of a capital asset. Harry Roff, 36 T.C. 818 (1961), followed; Percy W. Phillips, 30 T.C. 866 (1958), distinguished.
1Opinion of the Court
OPINION.
Oppek, Judge:
As in Percy W. Phillips, 30 T.C. 866 (1958), and Harry Roff, 36 T.C. 818 (1961), on appeal (C.A. 3, Npv. 20, 1961), we have before us two opposing theories as to the treatment of the excess which petitioner here received over the stipulated cost of a contract with an insurance company. Respondent contends first that the “sale” by petitioner should be disregarded because of its obvious motivation purely for tax purposes; and second, that even if a sale took place, the excess received by petitioner over his cost represented an item of ordinary income, such as interest,…
2Cases cited20 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. HorstSupreme Court of the United States · 1940
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Helvering v. EubankSupreme Court of the United States · 1941
- Hort v. CommissionerSupreme Court of the United States · 1941
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3Cited by10 opinions
- Cohen v. CommissionerUnited States Tax Court · 1963
- Jones v. CommissionerUnited States Tax Court · 1963
- Barrett v. CommissionerUnited States Tax Court · 1964
- Fisher v. CommissionerUnited States Tax Court · 1974
- Barrett v. CommissionerUnited States Tax Court · 1964
5 more not listed; retrieve them via the Exa API.