Bassett v. Commissioner
United States Board of Tax Appeals
1. The petitioner in contemplation of the sale of certain stock made an irrevocable gift on trust of part of his shares to his wife for life, with reversion to himself on her death, naming himself as trustee. The executory contract of sale was later carried out and petitioner received the proceeds of the sale as trustee.
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1. The petitioner in contemplation of the sale of certain stock made an irrevocable gift on trust of part of his shares to his wife for life, with reversion to himself on her death, naming himself as trustee. The executory contract of sale was later carried out and petitioner received the proceeds of the sale as trustee. Held, that a bona fide trust of the shares was created and the capital gain on the sale was not income taxable to the petitioner under section 166 or 167 of the Revenue Act of 1928. 2. Under the same sale in 1929, $20,000 of the purchase price was deposited by the buyer in a…
1Opinion of the Court
*185OPINION.
ARUndell :
The first question raised in this case is whether the gain derived from the sale in 1929 of the 30 shares of Hall & Connolly stock held in trust by the petitioner for the benefit of his wife constitutes income taxable to the petitioner. The petitioner created an irrevocable trust, naming his wife beneficiary for life, with reversion to himself and his heirs on her death. He named himself trustee and reserved full powers to manage the investment of the trust property. Assuming that a valid trust was created, a point which respondent does not concede and which will be…
2Cases cited12 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Crooks v. HarrelsonSupreme Court of the United States · 1930
- Reinecke v. Northern Trust Co.Supreme Court of the United States · 1929
- Burnet v. WellsSupreme Court of the United States · 1933
7 more not listed; retrieve them via the Exa API.
3Cited by29 opinions
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Bonham v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1937
- Oden v. CommissionerUnited States Tax Court · 1971
- Stiles v. CommissionerUnited States Tax Court · 1978
- Commissioner of Internal Revenue v. BettsCourt of Appeals for the Seventh Circuit · 1941
24 more not listed; retrieve them via the Exa API.