Tiffany v. Commissioner
United States Tax Court
In 1942, Herbert C. Tiffany, decedent, and his wife created a trust, with themselves as cotrustees, holding certain property in trust for their children. The trust then entered into a lease agreement, leasing the property to a partnership, in which decedent was a partner. The partnership made several payments to the trust for rental and for property sold on behalf of the trust. Thereafter, for about 10 years, no payments were made to the trust by the partnership.
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In 1942, Herbert C. Tiffany, decedent, and his wife created a trust, with themselves as cotrustees, holding certain property in trust for their children. The trust then entered into a lease agreement, leasing the property to a partnership, in which decedent was a partner. The partnership made several payments to the trust for rental and for property sold on behalf of the trust. Thereafter, for about 10 years, no payments were made to the trust by the partnership. Prior to Dec. 1, 1949, the Tiffanys borrowed $ 12,161.78 in cash from the trust. In that year, decedent, in his individual…
1Opinion of the Court
OPINION
TURNER, Judge:
Respondent determined that the decedent’s estate should be increased by $59,014.74 to account for decedent’s one-half community obligation for principal and accrued interest totaling $118,029.49 on a promissory note dated December 1, 1949, executed in favor of the decedent and Virginia Tiffany as trustees for their children under a declaration of trust dated July 9, 1942, under the provisions of sections 2036, 2037, 2038, and 2053(a) of the 1954 Code.2 It is respondent’s primary position that no deduction is allowable for the promissory note in question because under…
2Cases cited20 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- Douglas v. WillcutsSupreme Court of the United States · 1935
- United States v. StapfSupreme Court of the United States · 1964
- Taft v. CommissionerSupreme Court of the United States · 1938
15 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Estate of Strangi v. CommissionerUnited States Tax Court · 2000
- Estate of Pollard v. CommissionerUnited States Tax Court · 1969
- Estate of Lazar v. CommissionerUnited States Tax Court · 1972
- Estate of Carli v. Comm'rUnited States Tax Court · 1985
- Estate of Davis v. CommissionerUnited States Tax Court · 1972
13 more not listed; retrieve them via the Exa API.