Jackman v. Commissioner
United States Board of Tax Appeals
Petitioner transferred to his wife, without consideration, shares of stock which had been pledged as collateral security for his debt. The stock had a value slightly in excess of the indebtedness. The pledgee, at the request of petitioner and his wife, had new certificates of stock issued in the name of the wife. She, in conformity with the understanding of the parties, endorsed them in blank and left them with the pledgee as security for her husband's debt.
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Petitioner transferred to his wife, without consideration, shares of stock which had been pledged as collateral security for his debt. The stock had a value slightly in excess of the indebtedness. The pledgee, at the request of petitioner and his wife, had new certificates of stock issued in the name of the wife. She, in conformity with the understanding of the parties, endorsed them in blank and left them with the pledgee as security for her husband's debt. Held, that the value of the gift is an amount equal to the excess of the value of the stock over the indebtedness.
1Opinion of the Court
*706OPINION.
Meulott :
In the statement attached to the deficiency notice , it is stated:
The value of the securities, which are the subject of these-gifts, is their fair marhet value at date of gift, subject however- to such discount as is reasonable on account of the hypothecated use of which they were subjected at date of gift. This discount is determined to be, not the full $120,000 indebtedness of the donor * * * for which * * * [the securities] were pledged as security, but in a reasonable discount amount of $24,000 based on donor’s ability to pay, considering all the circumstances.
Finding has…
2Cases cited4 opinions
- State v. HubbardSupreme Court of Kansas · 1928
- Atkinson v. BushSupreme Court of Kansas · 1914
- Citizens' National Bank v. Bank of CommerceSupreme Court of Kansas · 1909
- Capital Nat. Bank v. Fourth Nat. BankSupreme Court of Alabama · 1924
3Cited by11 opinions
- Commissioner of Internal Revenue v. ProcterCourt of Appeals for the Fourth Circuit · 1944
- Scott v. CommissionerUnited States Tax Court · 1974
- Bradford v. CommissionerUnited States Tax Court · 1960
- WACHOVIA BANK & TRUST COMPANY v. United StatesUnited States Court of Claims · 1958
- Gray v. CommissionerUnited States Tax Court · 1944
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