Lewis Testamentary Trust B v. Commissioner
United States Tax Court
P, a testamentary trust, sold at a gain its one-half interest in a home that was the principal residence of its income beneficiary, the decedent-settlor's surviving spouse. Held, P's net capital gain deduction under sec. 1202, I.R.C. 1954, is an item of tax preference under sec. 57(a)(9)(A), I.R.C. 1954, and is not within the "principal residence" exclusion of sec. 57(a)(9)(D), I.R.C. 1954.
1Opinion of the Court
OPINION
Parker, Judge:
Respondent determined an income tax deficiency of $7,769 for petitioner’s taxable year ending July 31, 1979, and an addition to tax under section 6651(a)1 of $1,942. Respondent has now conceded the addition under section 6651(a). The issue for decision is whether the net capital gain deduction arising from a testamentary trust’s sale of its one-half interest in a home that was the principal residence of its income beneficiary, the decedent-settlor’s surviving spouse, is an item of tax preference under section 57(a)(9). This depends on whether the testamentary trust,…
2Cases cited11 opinions
- Morgan v. CommissionerSupreme Court of the United States · 1940
- Lyeth v. HoeySupreme Court of the United States · 1938
- Estate of Christ v. Comm'rUnited States Tax Court · 1970
- Estate of Daisy F. Christ, Deceased, Robert Johnson Christ v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1973
- Haynes v. United StatesSupreme Court of the United States · 1957
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3Cited by3 opinions
- Gordon v. CommissionerUnited States Tax Court · 1985
- Gordon v. CommissionerUnited States Tax Court · 1985
- Lewis Testamentary Trust B v. CommissionerUnited States Tax Court · 1984