Whitaker v. Commissioner
United States Tax Court
The principal petitioner entered into a conditional sales contract for the acquisition of a going business. Pursuant to said contract he took out a policy of insurance on the life of the vendor, of which the petitioner vendee was the sole owner and sole beneficiary.
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The principal petitioner entered into a conditional sales contract for the acquisition of a going business. Pursuant to said contract he took out a policy of insurance on the life of the vendor, of which the petitioner vendee was the sole owner and sole beneficiary. Petitioner never changed the beneficiary of said policy nor at any time assigned any of the benefits thereof; and there was no legal restriction on the manner in which petitioner could use or apply any proceeds from the policy. Held, that the premiums which petitioner paid on such policy are not deductible by him for income tax…
1Opinion of the Court
OPINION.
PiERCE, Judge:
Respondent determined the following deficiencies in the petitioners’ income tax:
Year ending Dec. SI Deficiency
1954_$2,475. 53
1955_ 1,035.81
1956_ 1,078.81
The sole issue for decision is: Where the principal petitioner purchased a going business under a conditional sales contract, and pursuant to such contract took out for his own benefit a life insurance policy on the life of the vendor of such business, are the premiums paid by petitioner on said policy deductible by him? All other issues raised by the pleadings were conceded by the petitioners.
All the facts have been…
2Cases cited2 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- White v. United StatesSupreme Court of the United States · 1938
3Cited by4 opinions
- Matter of SaxeUnited States Bankruptcy Court, S.D. New York · 1981
- Chism Ice Cream Co. v. CommissionerUnited States Tax Court · 1962
- Home News Publishing Co. v. CommissionerUnited States Tax Court · 1969
- Whitaker v. CommissionerUnited States Tax Court · 1960