§273 — Holders of life or terminable interest
35 citing cases
Statute Text — 26 U.S.C. §273
Amounts paid under the laws of a State, the District of Columbia, a possession of the United States, or a foreign country as income to the holder of a life or terminable interest acquired by gift, bequest, or inheritance shall not be reduced or diminished by any deduction for shrinkage (by whatever name called) in the value of such interest due to the lapse of time.
Treasury Regulations
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Treas. Reg. §1.273-1Life or terminable interests
(a) In general. Amounts paid as income to the holder of a life or a terminable interest acquired by gift, bequest, or inheritance shall not be subject to any deduction for shrinkage (whether called by depreciation or any other name) in the value of such interest due to the lapse of time. In other words, the holder of such an interest so acquired may not set up the value of the expected future payments as corpus or principal and claim deduction for shrinkage or exhaustion thereof due to the passage of time. For the treatment generally of distributions to beneficiaries of an estate or trust, see Subparts A, B, C, and D (section 641 and following), Subchapter J, Chapter 1 of the Code, and the regulations thereunder. For basis of property acquired from a decedent and by gifts and transfers in trust, see sections 1014, 1015, and 1022, and the regulations thereunder.
(b) Effective/applicability date. The provisions in this section are applicable for taxable years beginning on or after September 16, 1958. The provisions of this section relating to section 1022 are effective on and after January 19, 2017.
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Treas. Reg. §1.273-1(a)In general.
In general. Amounts paid as income to the holder of a life or a terminable interest acquired by gift, bequest, or inheritance shall not be subject to any deduction for shrinkage (whether called by depreciation or any other name) in the value of such interest due to the lapse of time. In other words, the holder of such an interest so acquired may not set up the value of the expected future payments as corpus or principal and claim deduction for shrinkage or exhaustion thereof due to the passage of time. For the treatment generally of distributions to beneficiaries of an estate or trust, see Subparts A, B, C, and D (section 641 and following), Subchapter J, Chapter 1 of the Code, and the regulations thereunder. For basis of property acquired from a decedent and by gifts and transfers in trust, see sections 1014, 1015, and 1022, and the regulations thereunder.
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Treas. Reg. §1.273-1(b)Effective/applicability date.
Effective/applicability date. The provisions in this section are applicable for taxable years beginning on or after September 16, 1958. The provisions of this section relating to section 1022 are effective on and after January 19, 2017.
35 Citing Cases
1037, 1038, 1098 (now codified at 2 U.S.C. § 601(f)). 27 This is so because demand for the credit would increase relative to demand for the partial excise tax exemption under prior law. 28 Salvatore Lazzari, Cong. Rsch. Serv., RL32979, Alcohol Fuels Tax Incentives (2005); see also Molly F. Sherlock, Cong. Rsch. Serv., R41227, Energy
and Rules of Practice and Procedure of the U.S. Tax Court (with boldface added for emphasis) Revenue Act of 1924, ch. 234, §§ 273(1), 274(a)–(c), 900(e), (k), 43 Stat. 253, 296, 297, 337, 338 (enacting deficiency procedures with a 60–day deadline): Sec. 273. As used in this title the term “deficiency” means— (1) The amount by which the tax imposed by this title [i.e., Title II.—Income Tax] exceeds the amount shown as the tax by the taxpayer upon his return . . . . Sec. 274. (a) If, in the case
273.303 (West 2012) provides: The assets ofa corporation in the process ofdissolution shall be applied and distributed as follows: (1) All liabilities and obligations ofthe corporation shall be paid and discharged, or adequate provisions shall be made therefor; (2) Assets held by the corporation upon condition requiring retum, transfer or conveyance, which condition occurs by reason of the dissolution, shall be returned, transferred or conveyed in accordance with such requirements; (3) Assets re
As such, all three prongs of§ 273 have been met: Double D (1) made a conveyance, (2) without fair consideration, (3) that rendered Double D insolvent.
As such, all three prongs of§ 273 have been met: Double D (1) made a conveyance, (2) without fair consideration, (3) that rendered Double D insolvent.
y the person to whom it was addressed." Hagner v. United States, 285 U.S. 427, 430 (1932); see also Rios v. Nicholson, 490 F.3d 928, 930-931 (Fed. Cir. 2007); Jag Brokerage, Inc. v. Commissioner, T.C. Memo. 2012-315, at *7; 29 Am. Jur. 2d, Evidence, sec. 273 (2008). We have previously allowed the Commissioner to rely on the presumption ofofficial regularity and delivery, when not rebutted by a taxpayer, to establish that the taxpayer actually received a notice ofdeficiency for which the Commissi
e oftax than did the earlier deficiency notice), aff'g on this issue 1 5(...continued) Commissioner shall have no right to determine any additional deficiency in respect ofthe same taxable year, except in the case of fraud, and except as provided in subsection (e) ofthis section, relating to assertion ofgreater deficiencies before the Board, or in section 273(c), relating to the making ofjeopardy assessments.
files a petition with the Board within the time prescribed in such subsection, the Commissioner shall have no right to determine any additional deficiency in respect of the same taxable year, except in the case of fraud, and except as provided in subsection (e) of this section, relating to assertion of greater deficiencies before the Board, or in section 273(c), relating to the making of jeopardy assessments.
reached its destination in usual time and was actually received by the person to whom it was addressed." Hagner v. United States, 285 U.S. 427, 430 (1932); see also Rios v. Nicholson, 490 F.3d 928, 930-931 (Fed. Cir. 2007); 29 Am. Jur. 2d, Evidence, sec. 273 (2008) ("Mailbox [R]ule"). We have said: "Respondent is entitled to rely upon presumptions ofofficial regularity and delivery where the record reflects proper mailing ofthe statutory notice of deficiency." Powers v. Commissioner, T.C. Memo.
273 requires respondent to prove by a preponderance ofthe evidence: (1) a conveyance; (2) made without fair consideration; (3) by a person who was or will be rendered insolvent by the conveyance.
273.1384, subdiv. 1 (West 2007). 3SISTER stands for Success in Special Needs Together Encouraging Residents. - 5 - Easter baskets, painting, and mowing lawns-including the lawn at the Strommes' other house 4 According to Ms. Stromme, she always had a client with her and the constantinteractionwas a "24/7job". . To handle these client demands,
With regard to constructive fraud, New York law provides that "Every conveyance made and every obligation incurred by a person who is or will be thereby rendered insolvent is fraudulent as to creditors without regard to is his actual intent if the conveyance is made or the obligation incurred without a fair consideration." N.Y.
Respondent argues that section 273 applies to disallow the deductions taken by petitioner in 1991 and 1992 for amortization of her life interest in the trust.