- 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withdrawn during that year the interest at issue.7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.
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