Bache Trust v. Commissioner
United States Tax Court
In 1948, the petitioner trusts paid additional estate taxes on the estate of decedent Jules S. Bache pursuant to the respondent's determination that their corpora were gifts in contemplation of death. Their assets consisted of certain shares of stock. After payment of the additional estate taxes, they sold a part of such shares and in computing the gain thereon added to their bases the proportionate amount of additional estate taxes which they had paid.
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In 1948, the petitioner trusts paid additional estate taxes on the estate of decedent Jules S. Bache pursuant to the respondent's determination that their corpora were gifts in contemplation of death. Their assets consisted of certain shares of stock. After payment of the additional estate taxes, they sold a part of such shares and in computing the gain thereon added to their bases the proportionate amount of additional estate taxes which they had paid. Held, the estate taxes paid by petitioner trusts were not payments to protect and preserve their assets within the meaning of section 113 (b)…
1Opinion of the Court
OPINION.
Rice, Judge:
These consolidated proceedings involve deficiencies in income tax for 1948 determined by the respondent against the Jules S. Bache Trust for Hazel B. Beckman and the Jules S. Bache Trust for Kathryn B. Miller, in the respective amounts of $35,055.43 and $30,510.13.
The sole issue is whether estate taxes paid by the petitioner trusts on the estate of Jules S. Bache, in compromise of the respondent’s determination that the corpora of such trusts were gifts in contemplation of death, were properly chargeable to their capital accounts and, hence, proper additions to the bases…
2Cases cited3 opinions
- Beck v. CommissionerUnited States Tax Court · 1950
- Levy v. CommissionerUnited States Tax Court · 1951
- Moffett v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. MoffettCourt of Appeals for the Second Circuit · 1951
3Cited by9 opinions
- Vaira v. CommissionerUnited States Tax Court · 1969
- Rippey v. CommissionerUnited States Tax Court · 1956
- Spero v. CommissionerUnited States Tax Court · 1958
- Michel v. CommissionerCourt of Appeals for the Second Circuit · 1956
- Bache Trust v. CommissionerUnited States Tax Court · 1955
4 more not listed; retrieve them via the Exa API.