Estate of Du Pont v. Commissioner
United States Tax Court
1. D, who was then 65 years old, conveyed all but 18 acres of his 260-acre residential and recreational estate (Bellevue Hall) to his wholly owned corporation (Hall, Inc.) which had been created for that purpose. The portion thus transferred was used by him to train racehorses.
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1. D, who was then 65 years old, conveyed all but 18 acres of his 260-acre residential and recreational estate (Bellevue Hall) to his wholly owned corporation (Hall, Inc.) which had been created for that purpose. The portion thus transferred was used by him to train racehorses. He shortly thereafter leased the property from his corporation at a rent based upon not more than one-quarter to one-third of the property's fair market value for a term of 10 years with an option to renew for successive 10-year terms. The rental was based upon the use of the property as a "horse farm," whereas the…
1Opinion of the Court
OPINION
Raum, Judge:
1. Section 2036 issue. — Although there is a superficial similarity in respect of the facts relating to the Hall, Inc., and Point Happy properties, there are nevertheless important differences between them. In the circumstances we consider each of them separately.(a) Hall, Inc— Insofar as the Hall, Inc., property is concerned, the relevant sequence of events is as follows: Decedent organized Hall, Inc., a corporation owned entirely by him, to which he then transferred the “horse farm” portion of Bellevue Hall, a residential estate also owned by him. Shortly thereafter he…
2Cases cited16 opinions
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- Commissioner v. Estate of ChurchSupreme Court of the United States · 1949
- United States v. ByrumSupreme Court of the United States · 1972
- United States v. Estate of GraceSupreme Court of the United States · 1969
- United States v. O'MALLEYSupreme Court of the United States · 1966
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3Cited by1 opinion
- Estate of Du Pont v. CommissionerUnited States Tax Court · 1975