1938 BTA LEXIS 834 | B.T.A. | 1938
Lead Opinion
Two questions are here presented: (1) Was $15,000 received by petitioner in 1934 taxable to him under section 22 (b) (2)
As to the first proposition: Section 22 (b) (2) of the Revenue Act of 1934
We therefore hold that the respondent was in error in including the $20,000 received by Maud G-illespie in 1934 in petitioner’s income.
Eeviewed by the Board.
Decision will he entered vmder Rule 50.
SEC. 22. GROSS INCOME.
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(b) Exclusions from Gross Income. — The following items shall not be included in gross income and shall be exempt from taxation under this title :
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(2) Annuities, Etc. — Amounts received (other than amounts paid by reason of the death of the insured and interest payments on such amounts and other than amounts received as annuities) under a life insurance or endowment contract, but if such amounts (when added to amounts received before the taxable year under such contract) exceed the aggregate premiums or consideration paid (whether or not paid during the taxable year) then the excess shall bo included in gross income. Amounts received as an annuity under an annuity or endowment contract shall be included in gross income; except that there shall be excluded from gross income the excess of the amount received in the taxable year over an amount equal to 3 per centum of the aggregate premiums or consideration paid for such annuity (whether or not paid during such year), until the aggregate amount excluded from gross income under this title or prior income tax laws in respect of such annuity equals the aggregate premiums or consideration paid for such annuity. In the case oí a transfer for a valuable consideration, by assignment or otherwise, of a life insurance, endowment, or annuity contract, or any interest therein, only the actual value of such consideration and the amount of the premiums and other sums subsequently paid by the transferee shall be exempt from taxation under paragraph (1) or this paragraph