Procter v. Commissioner
United States Tax Court
Held, petitioner is not entitled to deductions on account of amounts paid to acquire defeasible remainder interests of her son in certain trusts which interests were divested by reason of her son's death during the taxable year. The remainder interests were not acquired in transactions "entered into for profit" within section 23 (e) (2), I. R. C., nor was the son's death an "other casualty" within section 23 (e) (3), I. R. C.
1Opinion of the Court
OPINION.
Raum, Judge:
Petitioner’s principal contention is that she is entitled to a deduction of $175,378.44 under section 23 (e) (2) of the Internal Revenue Code as a loss sustained in a “transaction entered into for profit.” The amount in question represents her aggregate expenditures to acquire remainder interests of her son in two trusts.
Petitioner was the life beneficiary of these trusts, and her son’s remainder interests could take effect in possession or enjoyment only if he survived petitioner; otherwise, the remainders were to go to her son’s issue. The son died in 1947, during…
2Cases cited5 opinions
- Seidler v. CommissionerUnited States Tax Court · 1952
- Early v. AtkinsonCourt of Appeals for the Fourth Circuit · 1949
- Smith v. CommissionerUnited States Tax Court · 1948
- Helvering v. LouisCourt of Appeals for the D.C. Circuit · 1935
- Thomas v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1938
3Cited by1 opinion
- Procter v. CommissionerUnited States Tax Court · 1952