Phillips v. Commissioner
United States Tax Court
Petitioner owned an endowment insurance policy on his life in the amount of $ 27,000. Twelve days before the policy matured and when its cash value was $ 26,973.78, petitioner sold it to his law partners for $ 26,750. The cost of the policy to petitioner was $ 21,360.49. Held, upon the facts, the sale was bona fide and is recognizable for tax purposes.
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Petitioner owned an endowment insurance policy on his life in the amount of $ 27,000. Twelve days before the policy matured and when its cash value was $ 26,973.78, petitioner sold it to his law partners for $ 26,750. The cost of the policy to petitioner was $ 21,360.49. Held, upon the facts, the sale was bona fide and is recognizable for tax purposes. Held, further, that petitioner is entitled to treat the increment received from such sale as gain from the sale or exchange of a capital asset.
1Opinion of the Court
Respondent determined a deficiency in income tax for the year 1952 in the amount of $10,061.59. The petition raised two issues and made a claim for a refund based on respondent’s determination in the statutory notice of deficiency that petitioners had overstated their dividend income and income from a partnership. In his answer respondent admitted that dividend income and income from a partnership had been overstated.' One of the issues raised by the petition has been settled by the stipulation filed herein. The remaining question for our decision is whether the respondent erred in his…
2Cases cited13 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. HorstSupreme Court of the United States · 1940
- Higgins v. SmithSupreme Court of the United States · 1940
8 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Commissioner of Internal Revenue v. Percy W. Phillips and Betty R. Phillips (Husband and Wife)Court of Appeals for the Fourth Circuit · 1960
- S. C. Johnson & Son, Inc. v. CommissionerUnited States Tax Court · 1975
- Jones v. CommissionerUnited States Tax Court · 1962
- Roff v. CommissionerUnited States Tax Court · 1961
- Crocker v. CommissionerUnited States Tax Court · 1962
14 more not listed; retrieve them via the Exa API.