Linder v. Commissioner
United States Tax Court
Petitioner, a New Jersey resident, executed gratuitous promises under seal to pay certain sums to his sister. He paid and deducted interest on the promised amounts. Held, under New Jersey law the sealed promises are unenforceable and interest paid with respect thereto is nondeductible.
1Opinion of the Court
Hall, Judge:
Respondent determined the following deficiencies in petitioner’s income tax:
Year Deficiency
1971. $1,792.50
1972. 1,433.20
Another issue having been disposed of by mutual agreement, the remaining issue for decision is whether petitioner is entitled to interest deductions under section 1631 for certain payments made to his sister.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
Joseph Linder resided in Bayonne, N.J., at the time he filed his petition.
Petitioner was an actuary, employed on a consulting basis by various insurance companies. In November 1950…
2Cases cited30 opinions
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- Carl E. Weller and Emily I. Weller v. Commissioner of Internal Revenue, W. Stuart Emmons v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1959
- Morton v. CommissionerUnited States Board of Tax Appeals · 1938
- Morton v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1940
- Autenreith v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1940
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