Court Opinion

ID: 9638063
Source: CourtListenerOpinion
Date Created: 2023-08-22 15:32:19.121337+00
Date Added: 2024-06-11T15:00:18.120285
License: Public Domain

MILLER, Circuit Judge
(dissenting in part).
I believe the previous ruling of this court in Commissioner v. Alldis’ Estate, 6 Cir., 140 F.2d 885 is applicable and should be followed.
It was there held that the amount received by the Administrator for the certificates owned by the decedent resulted in a capital gain rather than receipt of income. The interest of the owner of certificates is the same regardless of how that interest is terminated, by death or by termination of employment. In either event that interest ceases and is liquidated. I see no material difference in its liquidation by transfer to the corporation, as in the Alldis case, and in its liquidation by surrender to the Trustees, as in this case. In both instances he receives the then cash value of his interest in the trust. In any event, the increase in market value of the assets of the trust is not receipt of income. In my opinion, the amount received by the taxpayer for his certificates upon termination of his employment should be treated as a capital gain rather than receipt of income.