Hetherington v. Commissioner

Board of Tax Appeals

Hetherington v. Commissioner

20 B.T.A. 806, 1930 BTA LEXIS 2027

CourtUnited States Board of Tax Appeals

DecidedSeptember 15, 1930

DocketDocket No. 28334.

StatusPublished

Cited by1 cases

This text of 20 B.T.A. 806 (Hetherington v. Commissioner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Hetherington v. Commissioner, 20 B.T.A. 806, 1930 BTA LEXIS 2027 (bta 1930).

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Opinion

[808]*808OPINION.

Van Fossan:

The law presumes that money transferred from a wife to the husband is a gift, but such a presumption is rebuttable. See Jacob Grossman, 9 B. T. A. 643. The evidence establishes that the petitioner utilized the credit extended to her by banks in order to obtain the money which she in turn lent to her husband. Her financial status was due to the inheritance she received from her father. The loans received from her by her husband were strictly for the promotion of a business enterprise in which the petitioner was not directly engaged and from which she expected to receive no profit. It was intended that the loans should be repaid as previous loans to him had been. The loans were not ascertained to be worthless until after her husband’s death, since she was not aware of his true financial condition during his lifetime. Hetherington’s death occurred on December 5, 1921, and his will was probated in January, 1922. The fact that his estate was worthless was not disclosed until that date.

Under the facts of this case we are of the opinion that a loss in the amount of $44,500 is properly deductible from the income of the petitioner during the year 1922.

Judgment mil be entered under Rule 50.

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[808]*808OPINION.

Van Fossan:

The law presumes that money transferred from a wife to the husband is a gift, but such a presumption is rebuttable. See Jacob Grossman, 9 B. T. A. 643. The evidence establishes that the petitioner utilized the credit extended to her by banks in order to obtain the money which she in turn lent to her husband. Her financial status was due to the inheritance she received from her father. The loans received from her by her husband were strictly for the promotion of a business enterprise in which the petitioner was not directly engaged and from which she expected to receive no profit. It was intended that the loans should be repaid as previous loans to him had been. The loans were not ascertained to be worthless until after her husband’s death, since she was not aware of his true financial condition during his lifetime. Hetherington’s death occurred on December 5, 1921, and his will was probated in January, 1922. The fact that his estate was worthless was not disclosed until that date.

Under the facts of this case we are of the opinion that a loss in the amount of $44,500 is properly deductible from the income of the petitioner during the year 1922.

Judgment mil be entered under Rule 50.

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20 B.T.A. 806, 1930 BTA LEXIS 2027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hetherington-v-commissioner-bta-1930.

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