Estate of Weiskopf v. Commissioner
United States Tax Court
At death, D had substantial stock holdings in five corporations. D's stock in one of the corporations was transferred to trusts for his grandchildren. Pursuant to will or prior agreement, the estate sold stock in four of the corporations under circumstances that produce ordinary income if the constructive ownership rules ( sec. 318, I.R.C. 1954) apply to link the trusts and the estate.
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At death, D had substantial stock holdings in five corporations. D's stock in one of the corporations was transferred to trusts for his grandchildren. Pursuant to will or prior agreement, the estate sold stock in four of the corporations under circumstances that produce ordinary income if the constructive ownership rules ( sec. 318, I.R.C. 1954) apply to link the trusts and the estate. The existence of this link turns on whether the trusts were beneficiaries of the estate at the date of death. Held, the tax apportionment agreement executed between the estate and the trusts and sanctioned by…
1Opinion of the Court
Wilbur, Judge:
By notice of deficiency, respondent determined the following deficiencies in petitioner’s income tax:
Taxable year Deficiency
1969 .$1,365,144
1970 . 51,779
1971.297
In addition, by notice of deficiency at issue in docket No. 3837-72 (not consolidated with these proceedings) respondent determined deficiencies in petitioner’s estate tax in the amount of $9,387,576.29. The parties have reached a basis of settlement with respect to the estate tax deficiency, which will result in a refund to petitioner.
Due to concessions by the parties, the sole remaining issue for our decision is…
2Cases cited7 opinions
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- In Re the Probate of the Will of CookNew York Court of Appeals · 1926
- Moss v. . CohenNew York Court of Appeals · 1899
- In re the Accounting of Kings County Trust Co.New York Surrogate's Court · 1953
- Estate of William A. Webber, Sr., Deceased, William A. Webber, Jr. v. United StatesCourt of Appeals for the Sixth Circuit · 1968
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3Cited by1 opinion
- Estate of Weiskopf v. CommissionerUnited States Tax Court · 1981