Brodersen v. Commissioner
United States Tax Court
Pursuant to a property settlement, incident to a divorce decree, petitioner acquired a decreasing-term life insurance policy on his life to secure the payment of alimony, naming his wife owner-beneficiary. The wife's ownership of the term policy conferred no economic benefit on her and merely afforded her additional protection to insure payment of the amounts due her.
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Pursuant to a property settlement, incident to a divorce decree, petitioner acquired a decreasing-term life insurance policy on his life to secure the payment of alimony, naming his wife owner-beneficiary. The wife's ownership of the term policy conferred no economic benefit on her and merely afforded her additional protection to insure payment of the amounts due her. Held, on the facts presented, since the wife received no economic benefit from the policy, the premiums paid on the insurance policy are not deductible under sec. 215, I.R.C. 1954.
1Opinion of the Court
Sterrett, Judge:
The respondent determined a deficiency in the Federal income tax of the petitioners of $216.45 for the taxable year ended December 31,1966.
The only issue for decision is whether a premium paid by petitioner for insurance on his life, purchased pursuant to a divorce decree and naming bis former wife as owner-beneficiary, is deductible under section 215, IRC 1954.1
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, are incorporated herein by this reference.
William H. Brodersen, Jr.…
2Cases cited12 opinions
- Carmichael v. CommissionerUnited States Tax Court · 1950
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- Seligmann v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1953
- Stewart v. CommissionerUnited States Tax Court · 1947
- Weil v. CommissionerCourt of Appeals for the Second Circuit · 1957
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- Brodersen v. CommissionerUnited States Tax Court · 1971
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