Parshelsky v. Commissioner
United States Board of Tax Appeals
Held, that under reciprocal annuity contracts purchased by the petitioner and his brother, pursuant to agreement at a time when the brothers were indebted and involved in contentions as to taxes, the petitioner is taxable upon 3 per centum of the consideration in fact paid by him for life annuities applied for by his brother, but payable to petitioner, and refund annuities contingently payable to his estate, and upon the entire amount received by the petitioner from annuity…
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Held, that under reciprocal annuity contracts purchased by the petitioner and his brother, pursuant to agreement at a time when the brothers were indebted and involved in contentions as to taxes, the petitioner is taxable upon 3 per centum of the consideration in fact paid by him for life annuities applied for by his brother, but payable to petitioner, and refund annuities contingently payable to his estate, and upon the entire amount received by the petitioner from annuity contracts transferred to him by his brother, the entire consideration paid by the petitioner for such transfer having…
1Opinion of the Court
*460OPINION.
Disney:
The petitioner and his brother each invested $200,000 in contracts of annuity. The petitioner applied for and received contracts known as Exhibits 6 to 10 and his brother applied for and received contracts known as Exhibits 1 to 5. This was done by agreement. Each made his brother annuitant, with himself and his estate beneficiary or remainderman if he survived the brother. The cost of the annuity for life, the refund annuity (annuity payable after annuitant’s death) to petitioner, and to the brother dependent upon survival, is shown by the evidence;
In the taxable year the…
2Cases cited1 opinion
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
3Cited by3 opinions
- Bush Bros. & Co. v. CommissionerUnited States Tax Court · 1979
- Bell v. CommissionerUnited States Board of Tax Appeals · 1942
- Parshelsky v. CommissionerUnited States Board of Tax Appeals · 1942