Brooks v. Commissioner of Internal Revenue, Docket No. 32401.
| Decision Date | 05 February 1931 |
| Docket Number | Docket No. 32401. |
| Citation | 22 BTA 71 |
| Parties | ERNEST BROOKS, HAROLD WILSON BROOKS, AND WALTER DOUGLAS BROOKS, EXECUTORS, ESTATE OF ERNEST AUGUSTUS BROOKS, PETITIONERS, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. |
| Court | U.S. Board of Tax Appeals |
James L. Dohr, Esq., for the petitioners.
Frank T. Horner, Esq., for the respondent.
This is a proceeding for the redetermination of a deficiency in estate tax in the amount of $24,865.88, asserted against the petitioners as executors of the estate of Ernest Augustus Brooks, who died on October 31, 1924. The issues are:
(1) Whether or not in determining the value of the net estate, which is the basis for computing the tax, the value of the following property of the decedent, who was a nonresident alien not engaged in business in the United States at the time of his death, should be included in determining the value of that part of his gross estate which at the time of his death was situated in the United States, namely, (a) shares of stock in a foreign corporation, (b) bonds of foreign corporations, (c) bonds of foreign governments, (d) bonds of domestic corporations, and (e) bonds of a domestic municipality, the paper evidences of such securities being located within the United States at the time of the decedent's death; and
(2) Whether or not the amount of $14,517.98 deposited by or for the decedent with the firm of Lawrence Turnure & Company, New York, N. Y., constituted "moneys deposited with any person carrying on the banking business, by or for a nonresident decedent who was not engaged in business in the United States at the time of his death."
FINDINGS OF FACT.
The petitioners are the duly appointed and qualified executors of the estate of Ernest Augustus Brooks, deceased, with an office at 52 Broadway, New York, N. Y.
The decedent died on October 31, 1924, and at the time of his death was a citizen of the Kingdom of Great Britain, and a resident of the Republic of Cuba. At the time of his death, the decedent was not engaged in business in the United States.
At the time of his death, the decedent owned securities, which were in New York City, U. S. A., as follows:
(a) Bonds of foreign corporations and accrued interest thereon in
the amount of _______________________________________________ $24,384.97
(b) Bonds of foreign governments and accrued interest thereon in
the amount of _______________________________________________ 55,610.49
(c) Bonds of domestic corporations and accrued interest thereon in
the amount of _______________________________________________ 460,315.32
(d) Bonds of a domestic municipality and accrued interest thereon
in the amount of ____________________________________________ 15,073.57
(e) Stock in a foreign corporation in the amount of ______________ 50,000.00
At the time of his death, the decedent also had cash on deposit with Lawrence Turnure & Company, New York City, in the amount of $14,517.98.
The bonds of foreign corporations and accrued interest thereon, aggregating a value of $24,384.97, were as follows:
(1) $20,000 Canadian National Ry. Co. 30-Yr. 4½% Coupon Gold
Bonds, due 1954 _____________________________________________ $19,150.00
Accrued interest thereon ____________________________________ 114.36
(2) $5,000 Canada Southern Ry. Co. 1st Consolidated Mortgage
Guar. 5% Bonds, due 1963 ____________________________________ 5,100.00
Accrued interest thereon ____________________________________ 20.61
___________
Total _________________________________________________ 24,384.97
The bonds of foreign governments and accrued interest thereon, aggregating a value of $55,610.49, were as follows:
(3) $3,000 Dominican Republic Customs Adm. Sinking Fund 5%
Coupon Bonds of 1958__________________________________________ $3,030.00
Accrued interest thereon______________________________________ 37.91
(4) $4,000 Kingdom of Belgium 26-Yr. External Sinking Fund 7½%
Coupon Bonds, due 1945________________________________________ 4,390.00
Accrued interest thereon______________________________________ 124.59
(5) $3,000 Kingdom of Sweden 20-Yr. 6% External Coupon Bonds
of 1939_______________________________________________________ 3,131.25
Accrued interest thereon______________________________________ 67.87
(6) $10,000 Kingdom of Norway 20-Yr. 6% External Coupon Bonds
due 1944______________________________________________________ 9,850.00
Accrued interest thereon______________________________________ 148.37
(7) $7,000 Swiss Confederation 20-Yr. Sinking Fund 8% Bonds, due
1940__________________________________________________________ 8,032.50
Accrued interest thereon______________________________________ 185.66
(8) $5,000 French Government 20-Yr. External Sinking Fund 8%
Bonds, due 1945_______________________________________________ 4,237.50
Accrued interest thereon______________________________________ 50.83
(9) $7,000 Kingdom of Norway External Sinking Fund 8% Bonds
due 1940______________________________________________________ 7,866.25
Accrued interest thereon______________________________________ 46.16
(10) $7,000 Kingdom of Denmark External Sinking Fund & Refunding
8% Bonds, due 1945____________________________________________ 7,743.75
Accrued interest thereon______________________________________ 24.62
(11) $5,000 Kingdom of Belgium 25-Yr. External Sinking Fund
7½% Bonds, due 1945____________________________________ 5,487.50
Accrued interest thereon______________________________________ 155.73
__________
Total___________________________________________________ 55,610.49
The bonds of domestic corporations and accrued interest thereon, aggregating a value of $460,315.32, were as follows:
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