Johnstone v. Commissioner (A)
United States Tax Court
Estate Tax -- Nonresident Alien -- Gross Estate -- Property Subject to Mortgage -- Full Value or Only Equity of Redemption -- Sections 861 (a) (1), 812 (b) (4) -- Regulations 105, Section 81.38. -- Only the equity of redemption in United States real property need be included in the gross estate of a nonresident alien under Regulations 105, section 81.38 which is in accordance with Congressional intention as indicated by section 812 (b) (4) of the Internal Revenue Code.
1DissentHill, J.
Essentially the same issue as is before us here was considered and decided in City Bank Farmers’ Trust Co. v. Bowers, 68 F. 2d 909, affirming 2 F. Supp. 883, and Rodiek v. Helvering, 87 F. 2d 328, affirming 33 B. T. A. 1020. Thus, it would appear that these cases are controlling here unless there has been a change in the governing statutory provisions.
The applicable law in the City Bank Farmers’ Trust Co. case was the Revenue Act of 1918. The applicable law in the Rodiek case was the Revenue Act of 1926, as amended by the Revenue Acts of 1928 and 1932. In both these cases it was determined,…
2Cases cited3 opinions
- City Bank Farmers' Trust Co. v. BowersCourt of Appeals for the Second Circuit · 1934
- Rodiek v. HelveringCourt of Appeals for the Second Circuit · 1937
- City Bank Farmers' Trust Co. v. BowersDistrict Court, S.D. New York · 1932