Nicholson v. Commissioner
United States Tax Court
1. In determining a gift tax for 1940, the Commissioner held that prior gifts in 1935 were gifts of future interests and that therefore no $ 5,000 exclusions in respect thereof were permissible.
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1. In determining a gift tax for 1940, the Commissioner held that prior gifts in 1935 were gifts of future interests and that therefore no $ 5,000 exclusions in respect thereof were permissible. Held, that, since the gifts of 1935 were gifts in trust, the income of which was only expendable in the discretion of the trustee for the maintenance and education of the minor beneficiary, and the beneficiary had no right to corpus or income until he arrived at the age of thirty, they were gifts of future interests and no $ 5,000 exclusions were permissible. 2. A petition which assigns error in that…
1Opinion of the Court
OPINION.
SteRnhagun, Judge:
Of these two cases, submitted at the same time, one assails a gift tax deficiency for 1940 and the other assails income tax deficiencies for 1937, 1938, and 1939. They involve different issues.
Docket No. 109954- Gift Tax for 1940.
1. The gift tax deficiency for 1940 is based upon the Commissioner’s determination that in the taxpayer’s return for 1935, when the first gifts in the series were made, he had erroneously taken two $5,000 exclusions upon the gifts in trust for his two sons. This is based on the statement that the two gifts were gifts of future interests and…
2Cases cited5 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Blair v. CommissionerSupreme Court of the United States · 1937
- Burnet v. LoganSupreme Court of the United States · 1931
- United States v. PelzerSupreme Court of the United States · 1941
3Cited by24 opinions
- Commissioner of Internal Revenue v. CarterCourt of Appeals for the Second Circuit · 1948
- Dreymann v. Comm'rUnited States Tax Court · 1948
- Carter v. CommissionerUnited States Tax Court · 1947
- Hopkins v. CommissionerUnited States Tax Court · 1950
- Thomas L. Fawick and Marie Fawick v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1971
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