Bell v. Commissioner
United States Tax Court
Petitioner purchased stock from her father in exchange for her promise to pay her father and his wife an annuity of $ 15,000 per year for as long as either of them lived. In exchange for the annuity, the father made an absolute assignment of the stock to petitioner.
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Petitioner purchased stock from her father in exchange for her promise to pay her father and his wife an annuity of $ 15,000 per year for as long as either of them lived. In exchange for the annuity, the father made an absolute assignment of the stock to petitioner. Although petitioner's obligation to make the promised annuity payments was not contingent upon sufficient dividend income from the purchased stock, she did not have sufficient income and assets to make the payments without those dividends. Held, petitioner's promise to pay an annuity did not constitute an indebtedness within the…
1Opinion of the Court
Wiles, Judge:
Respondent determined a $2,520 deficiency in petitioner’s 1974 income tax. The sole issue for decision is whether petitioner, the obligor under a private annuity agreement, is entitled to an interest expense deduction for 1974 under section 1631 for any portion of the annual payment made pursuant to the private annuity agreement.
FINDINGS OF FACT
All the facts have been stipulated and are found accordingly.
Petitioner Rebecca Bell resided in Jekyll Island Marina, Ga., when she filed her 1974 income tax return and when she filed her petition in this case.
Prior to December 4,1972,…
2Cases cited14 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Autenreith v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1940
- Reliable Incubator & Brooder Co. v. CommissionerUnited States Tax Court · 1946
- Klein v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1936
- John C. W. Dix and Caroline W. Dix v. Commissioner of Internal Revenue, George E. Dix v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1968
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3Cited by4 opinions
- Garvey, Inc. v. United StatesUnited States Court of Claims · 1983
- Rebecca Bell v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1982
- Rye v. United StatesUnited States Court of Claims · 1992
- Bell v. CommissionerUnited States Tax Court · 1981