Barbara E. Seaman - Page 19




                                       - 19 -                                         
          2003.  That is because our determination of whether such interest           
          is so includible does not depend upon the resolution of that                
          genuine issue of fact.  We conclude that there is no genuine                
          issue of material fact as to whether petitioner was required to             
          withdraw during 2003 all of the respective dividend accumulations           
          under the Prudential policy and the USAA policy in order to have            
          withdrawn during that year the interest at issue.7                          
               Having concluded that there is no genuine issue of material            
          fact with respect to our determination of the second issue                  
          presented in petitioner’s motion, namely, whether the interest at           
          issue is includible in petitioner’s gross income for her taxable            
          year 2003, we shall now address that issue.  In resolving it, we            
          turn to certain regulations under sections 61 and 451 for guid-             
          ance.  As pertinent here, regulations under section 61 provide:             
                    § 1.61-7.  Interest.--(a) In general.  As a gen-                  
               eral rule, interest received by or credited to the                     
               taxpayer constitutes gross income and is fully taxable.                
               * * * For rules determining the taxable year in which                  
               interest, including interest accrued or constructively                 
               received, is included in gross income, see section 451                 
               and the regulations thereunder. * * *                                  
                     *      *      *      *      *      *      *                      

               7Respondent maintains that if we were to conclude, as we               
          have, that there is no genuine issue of material fact as to the             
          withdrawal of interest under the policies in question, respondent           
          is entitled to summary judgment on whether the interest at issue            
          under those policies is includible in petitioner’s gross income             
          for her taxable year 2003.  In support of that position,                    
          respondent relies on certain regulations under secs. 61 and 451             
          and Cohen v. Commissioner, 39 T.C. 1055 (1963) (discussed below).           
          See infra note 9.                                                           






Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next 

Last modified: November 10, 2007