Estate of Henry v. Commissioner
United States Tax Court
Petitioner made gifts of securities to trusts established for the benefit of her grandchildren. The trusts were required to pay all gift taxes resulting from the transfers. The trusts paid such gift taxes, totaling $ 2,085,967.26, from funds borrowed for that purpose. Held, petitioner did not realize a taxable gain in the amount of the difference between the gift taxes paid and her basis in the securities transferred.
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Petitioner made gifts of securities to trusts established for the benefit of her grandchildren. The trusts were required to pay all gift taxes resulting from the transfers. The trusts paid such gift taxes, totaling $ 2,085,967.26, from funds borrowed for that purpose. Held, petitioner did not realize a taxable gain in the amount of the difference between the gift taxes paid and her basis in the securities transferred. Turner v. Commissioner, 49 T.C. 356 (1968), affd. 410 F.2d 752 (6th Cir. 1969), followed; Johnson v. Commissioner, 59 T.C. 791 (1973), affd. 495 F.2d 1079 (6th Cir. 1974), cert.…
1Opinion of the Court
Featherston, Judge:
Respondent determined a deficiency in the amount of $647,934.63 in petitioners’ joint Federal income tax for 1971. Alternatively, respondent determined a deficiency in the amount of $699,640.83 in petitioner Kathryn C. Henry’s Federal income tax for 1972.
The principal issue for decision is whether petitioner Kathryn C. Henry realized net income as a result of the payment of gift taxes by the trusts to which she had made gifts of certain securities. In the event that income was so realized, we must deal with a second issue as to whether such income was realized in 1971, the…
2Cases cited13 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Johnson v. CommissionerUnited States Tax Court · 1973
- Turner v. CommissionerUnited States Tax Court · 1968
- Sheaffer v. CommissionerUnited States Tax Court · 1961
- Sirbo Holdings, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1973
8 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Tobler v. DerwinskiUnited States Court of Appeals for Veterans Claims · 1991
- Guest v. CommissionerUnited States Tax Court · 1981
- Davis v. CommissionerUnited States Tax Court · 1980
- Bradford v. CommissionerUnited States Tax Court · 1978
- Arnes v. CommissionerUnited States Tax Court · 1994
13 more not listed; retrieve them via the Exa API.