Casale v. Commissioner
United States Tax Court
To fund a deferred compensation agreement executed with its president and majority stockholder, a corporation purchased a combined life and annuity contract insuring his life. The corporation was the declared owner and beneficiary of the policy and its terms were substantially similar to the terms of the agreement. The stockholder was given the right under the agreement to designate who would take in the event of his death.
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To fund a deferred compensation agreement executed with its president and majority stockholder, a corporation purchased a combined life and annuity contract insuring his life. The corporation was the declared owner and beneficiary of the policy and its terms were substantially similar to the terms of the agreement. The stockholder was given the right under the agreement to designate who would take in the event of his death. Held, the annual premium paid on the policy in 1950 was a distribution to its majority stockholder equivalent to a taxable dividend under section 115 (a) of the 1939 Code.
1Opinion of the Court
OPINION.
Rice, Judge:
This proceeding involves a deficiency in income taxes of $1,953.14 for the year 1950 determined by the respondent against Oreste Casale.
The sole issue is whether the sum of $6,839.50 paid by O. Casale, Inc., as the annual premium upon an insurance policy on the life of petitioner, represented a distribution to him of a taxable dividend under section 115 (a)1 of the Internal Revenue Code of 1939 in the year of its payment.
All of the facts were stipulated, are so found, and are incorporated herein by tMs reference.
Petitioner, residing in New York City, New York, filed his…
2Cases cited7 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Higgins v. SmithSupreme Court of the United States · 1940
- Rogers v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1940
- Louis Greenspon v. Commissioner of Internal Revenue, (Three Cases). Anna Greenspon v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1956
- Paramount-Richards Theatres, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
2 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- American Properties, Inc. v. CommissionerUnited States Tax Court · 1957
- Silverman v. CommissionerUnited States Tax Court · 1957
- Mamula v. CommissionerUnited States Tax Court · 1964
- Essenfeld v. CommissionerUnited States Tax Court · 1961
- Centre v. CommissionerUnited States Tax Court · 1970
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