Volume 44 — Tax Court Reports

The petitioner's predecessor was engaged in the business of manufacturing cigars. It also processed some of the tobacco used in its cigars. Held: that within the meaning of section 532(a), I.R.C., the corporation was availed of for the purpose of avoiding the income tax with respect to its shareholders by permitting earnings and profits to accumulate instead of being divided or distributed, and hence was subject to the accumulated earnings tax imposed by section 531, I.R.C.

1. Held, T, a professional boxer who filed 1957 income tax return on cash basis, was not chargeable with any greater amount of income in 1957 from a certain championship match than was actually… Held: T, a professional boxer who filed 1957 income tax return on cash basis, was not chargeable with any greater amount of income in 1957 from a certain championship match than was actually received by him or paid out for his benefit from his contractual share of the receipts.

The doctor of petitioners' young son prescribed, for his poor adjustment to a public school and the home environment, attendance at any boarding school where a system of discipline would be… Held: $ 1,799 is nondeductible personal and family expense under section 262, 1954 Code; it was not expense of medical care within section 213(e) (1)(A), and is not deductible under section 213(a). (2) $ 25 is deductible under section 213(a) as medical expense.

Held: (1) The values of the corpora of two irrevocable trusts created by decedent on June 16, 1945, and December 6, 1946, are not… Held: The values of the corpora of two irrevocable trusts created by decedent on June 16, 1945, and December 6, 1946, are not includable in decedent's gross estate under the provisions of section 2036(a), I.R.C. 1954; (2) the values of certain properties held jointly by decedent and others at his death are includable in decedent's gross…

Held, rental income paid by a sublessee to a third party is income taxable to the sublessor. Held: rental income paid by a sublessee to a third party is income taxable to the sublessor.

Petitioner owned and operated a pipeline transmission system through which it transmitted gas it purchased in several States. Held: the costs incurred by petitioner in 1955 in transporting the gas purchased by it through its own pipeline to the storage facility are currently deductible as an operating expense. Such transmission costs are not includable in petitioner's 1955 closing inventory.

Issue 6. -- Held, the assessment of any tax for the year 1958 against petitioners Elliott and June is barred by the statute of… Held: the assessment of any tax for the year 1958 against petitioners Elliott and June is barred by the statute of limitations, although for a reason different from the reason given in our report filed December 16, 1964, the reason being that under clause (ii) of section 6501(e)(1)(A), I.R.C. 1954, no amount of capital gain from the sale…

The petitioners were the sole stockholders of a corporation which purchased logs in the taxable years from a partnership of which petitioners were the sole members. Held: that the amounts paid in the taxable years by the corporation in excess of the fair market value of the logs constituted taxable dividends to the petitioners.

Petitioners contracted to sell real property owned by Hilda and received part payment of the purchase price. Two days later they transferred the property to a corporation wholly owned by them. Held: the sale was actually made by petitioners, not the corporation, and the gain realized upon the sale of the property is taxable to petitioners as long-term capital gain.

Held, petitioner not taxable on dividends received by him and paid over to his sister pursuant to a stock purchase agreement whereby she retained a life interest in such dividends. Held: petitioner not taxable on dividends received by him and paid over to his sister pursuant to a stock purchase agreement whereby she retained a life interest in such dividends.

Petitioners sold shares of corporation X to corporation A in December 1958 for cash and installment obligations represented by A's promissory notes. Held: that this was not a disposition by petitioners of their installment obligations resulting in a taxable gain measured by the excess in value of corporation X's shares when acquired by corporation B over petitioners' cost basis of the shares at the time of their sale to corporation A.

Petitioners owned ranches located within the boundaries of Grand Teton National Park. Held: Although there is evidence to establish that the sales were coerced and might be held to be involuntary, we deem it unnecessary to determine whether or not they were involuntary conversions.

Held: That liquidation under the provisions of section 337, I.R.C. 1954, does not prevent the operation of section 268, I.R.C. 1954, to disallow… Held: That liquidation under the provisions of section 337, I.R.C. 1954, does not prevent the operation of section 268, I.R.C. 1954, to disallow deductions attributable to the production of an unharvested crop which is sold with the land and considered as property used in the trade or business under section 1231, I.R.C. 1954.

The petitioners entered into an option agreement to sell property. Held: that no exchange was accomplished between the petitioners and such third party within the purview of section 1031 of the Internal Revenue Code of 1954, but that the petitioners sold their property pursuant to the terms of the option.

Held, on the facts disclosed by the record a profit-sharing plan which had at one time been approved was no longer entitled to be treated as qualified where drastic changes had occurred in the… Held: on the facts disclosed by the record a profit-sharing plan which had at one time been approved was no longer entitled to be treated as qualified where drastic changes had occurred in the operation of the plan requiring its disqualification.

Held, that petitioner has established by a clear preponderance of the evidence that the transfer of property made to it by another… Held: that petitioner has established by a clear preponderance of the evidence that the transfer of property made to it by another corporation shortly after petitioner's formation was not made with a major purpose of obtaining the surtax exemption provided for in section 11(c) of the Internal Revenue Code of 1954; and accordingly that…

Petitioner was in the business of building and selling houses. Held: Respondent's adjustments to petitioner's inconsistent treatment of the first trust deed notes did not constitute a change in method of accounting. (2) Respondent did not prove the first trust deed notes were installment obligations.

Entire business enterprise of existing consolidated corporation was transferred to a new corporation which took over employees of the transferor corporation and assumed the obligations of the latter… Held: the distributions to T were not on account of his separation from the service, sec. 402(a)(2), I.R.C. 1954, and were therefore not entitled to capital gains treatment.

The petitioner, as guardian of his aged mother, received benefit payments through the Michigan State Department of Social Welfare and through the Social Security Administration, which he deposited in… Held: that of the total expenses paid for the medical care of the mother the petitioners are entitled to deduct, under section 213(a) of the Internal Revenue Code of 1954, only the portion thereof in excess of such benefit payments.

Held, advance payments for merchandise to be selected and delivered at a later time received without restriction as to use and without obligation to refund… Held: advance payments for merchandise to be selected and delivered at a later time received without restriction as to use and without obligation to refund are includable in income in the year of receipt. American Automobile Association v. United States, 367 U.S. 687, and Schlude v. Commissioner, 372 U.S. 128, followed.

The principal petitioner purported to transfer 50 percent of the stock in a wholly owned corporation to his two children, and then elected to have the corporation taxed as a subchapter S corporation… Held: that said transfers of stock were not bona fide and lacked economic reality; and accordingly, that all of the taxable income of the corporation is taxable to said principal petitioner.

1. Held, respondent's allocation of the income and deductions of the operation of two outdoor theaters by Copley Theatre, Inc., during 1958 and 1959 to Spicer Theatre, Inc., under section 482, I.R.C.… Held: respondent's allocation of the income and deductions of the operation of two outdoor theaters by Copley Theatre, Inc., during 1958 and 1959 to Spicer Theatre, Inc., under section 482, I.R.C. 1954, sustained.

Issue 1. -- Petitioner was engaged as an independent contractor in the operation of two wholesale dairy routes. He operated the routes on alternate days of each week. Held: the cost of the meals is personal and not allowable as ordinary and necessary expenses of traveling * * * while away from home as that phrase is used in section 162(a)(2), I.R.C. 1954.

Held, petitioner husband, a contract miner of uranium ore under specific written contracts, had no economic interest in the ore in place and therefore was not entitled to a deduction for percentage… Held: petitioner husband, a contract miner of uranium ore under specific written contracts, had no economic interest in the ore in place and therefore was not entitled to a deduction for percentage depletion against the income received under the mining contracts.

Held, that the petitioner has not shown error in the Commissioner's reduction in claimed depreciation deductions resulting from adjustments in useful lives and the assignment of salvage values to… Held: that the petitioner has not shown error in the Commissioner's reduction in claimed depreciation deductions resulting from adjustments in useful lives and the assignment of salvage values to certain construction equipment in the taxable year ended September 30, 1955.

Petitioner's purported assignment of growing crops to his several newly formed corporations held, in fact, assignments of the proceeds from the sale of such crops and the income from such sales held… Held: in fact, assignments of the proceeds from the sale of such crops and the income from such sales held taxable to petitioner.

1. Gain realized by petitioners on redemption prior to maturity at face amount of debentures issued to petitioners in 1953 at an original issue discount is taxable in part as ordinary income and in part as capital gain, where there was no specific intent on the part of the issuers at the date of issue to redeem the debentures prior to maturity and no understanding between the issuers and petitioners that the bonds would be redeemed prior to maturity. 2.

Taxpayer purportedly borrowed money from Gibraltar Financial Corp. to buy U.S. Treasury certificates of indebtedness. Gibraltar did not have the funds to loan to petitioner nor the certificates. Held: An amount paid by petitioner to Gibraltar in December 1957, designated as prepaid interest, is not deductible under section 163 (a), 1954 Code. As a payment of interest, the transaction between taxpayer and Gibraltar was a sham.

Held, that sums which petitioner Tillie Goldstein paid, purportedly as prepaid interest on two newly created items of indebtedness, did not in substance and reality… Held: that sums which petitioner Tillie Goldstein paid, purportedly as prepaid interest on two newly created items of indebtedness, did not in substance and reality constitute interest * * * on indebtedness, within the intendment of section 163(a), I.R.C. 1954; and accordingly said sums are not deductible.

The petitioner was and is a cooperative association of the type commonly known as a workers cooperative association, which was incorporated and… Held: that said cooperative association is entitled to be classified and treated for Federal income tax purposes, as a nonexempt cooperative association; and that as such, it is entitled to exclude from the proceeds of the association's operations, for Federal income tax purposes, the patronage dividends which were, pursuant to a…

1. Respondent, after examining Pasadena's books and records for the years 1954-56, proposed certain adjustments. Held: since respondent did not, in fact, reexamine the books and records of Pasadena, the failure to give written notification of such inspection pursuant to section 7605(b) does not render the deficiency notice invalid. 2. Petitioner acquired by purchase over 80 percent of the stock of Pasadena.

1. Held, that respondent was not bound to accept the allocation of a lump-sum purchase price paid for a mixed aggregate of the operating assets of a going business purchased by petitioner, which was… Held: that respondent was not bound to accept the allocation of a lump-sum purchase price paid for a mixed aggregate of the operating assets of a going business purchased by petitioner, which was made by petitioner's shareholders.

Held, certain percentage payments made during the taxable year 1959 by South Philadelphia Terminal, Inc., a corporation, and… Held: certain percentage payments made during the taxable year 1959 by South Philadelphia Terminal, Inc., a corporation, and Martinsville Rental Co., a partnership, for the dispatching of, for the overall supervision of, and for the making out of certain State, county, and Federal reports on certain trucks and trailers which were purchased…

Petitioner in 1955 sold to one Levitus all of the stock of a corporation which had a lease on a hotel. Held: the $ 22,500 was capital gain to taxpayer in 1958 under the principle of Arrowsmith v. Commissioner, 344 U.S. 6 (1952).

Held: 1. In determining the tax on a mutual insurance company other than life or marine under section 821, the tax on net investment income… Held: In determining the tax on a mutual insurance company other than life or marine under section 821, the tax on net investment income computed under section 821(a) (1) is first to be compared with the alternative tax on capital gains computed under section 1201(a) and the lesser of these is next to be compared with the tax computed…

1. Jurisdiction. -- Petitioners moved to dismiss for lack of jurisdiction, predicated upon allegations that the notices of deficiency were illegally issued by a person not legally authorized to do so… Held: that the statutory notices here involved are valid statutory notices of deficiency. Held, further, that petitioners have not sustained their burden of proving that the notices were issued without respondent's authority. The motions to dismiss are denied. 2.

Opinion in 43 T.C. 407 modified. Additional facts found based upon newly discovered evidence introduced in reopened trial. Held, original opinion as modified, approved and readopted. Held: original opinion as modified, approved and readopted.

1. Petitioner, Paul Caspers, has been engaged in the real estate business for more than 40 years. Held: petitioner is entitled to deduct the amount paid as an ordinary and necessary expense under section 162(a), I.R.C. 1954. 2. Held, petitioners correctly reported a dividend of $ 11,500 received by them during 1956 on common stock of the St. Louis-San Francisco Railway Co. McCullough v. United States, 344 F. 2d 383 (Ct. Cl.

1. Petitioner's claim that her signatures on 1957 and 1958 Federal income tax returns headed John T. & Marie A. Dolan were forged or procured by fraud is rejected. Held: the assessments against John did not prevent respondent from subsequently sending to petitioner a valid statutory notice of the same deficiencies. 3.

Petitioner owned three buildings. He leased them to three controlled corporations engaged in the plumbing supply business. He received salaries from two of the corporations as an officer-employee. Held: that the depreciation deductions are not allowable under section 167(a) because the properties were not used by petitioner in his trade or business or held by him for the production of income.

Held, the accumulation of petitioner's surplus during the years in issue was not beyond the reasonable needs of its business. Held: the accumulation of petitioner's surplus during the years in issue was not beyond the reasonable needs of its business.

Petitioner, which owned an apartment building, employed a real estate brokerage and management firm to lease its apartments, collect rents, and, in general, to manage its apartment building. Held: petitioner has not shown that it was entitled to deduct as reasonable compensation for its two corporate officers in the fiscal years 1957, 1960, 1961, and 1962 any amounts in excess of the amounts allowed by respondent.

Petitioners acquired all the stock of an Indiana corporation which was an electing small business corporation under subchapter S, I.R.C. 1954, having a… Held: the new corporation not being in existence at the time of the filing of the election, the requirements of section 1372 as to filing were not met, the purported election was invalid, the corporation was not an electing small business corporation, and the losses claimed by the petitioners are not allowable as deductions.

Petitioners held an option to purchase a tract of real property. In anticipation of the resale of the tract they formed a corporation to which they assigned the option. Held: the nonrecognition treatment of section 337, I.R.C. 1954, is not available to petitioners because the corporation was collapsible, sec. 341, I.R.C. 1954. Sec. 337(c) (1) (A).

In April 1961 petitioners sold an unimproved portion of the 2-acre tract on which their dwelling house was located. Held: under these facts petitioners are not entitled to the nonrecognition-of-gain provisions of section 1034 of the Internal Revenue Code of 1954.

Petitioner corporation (which was substituted as a partner in a partnership which had, prior to the substitution, consisted of petitioner's organizer-stockholder-president and another) did not receive amounts under a contract under which it was to furnish personal services with some person other than petitioner having the right to designate the individual to perform these services or with the individual to perform the services being designated in the contract, and therefore…

Held, that petitioner was not entitled to file a consolidated return with its parent corporation for the taxable year ended October 31,… Held: that petitioner was not entitled to file a consolidated return with its parent corporation for the taxable year ended October 31, 1957, because it did not make a timely consent to the filing of a consolidated return and the parent corporation, which for prior years filed its return on a calendar year basis, did not obtain approval of…

In 1953 and 1954 Oakes, a physician, and his wife had constructed, on land they owned jointly, a building which was used in his medical practice. Held: on these facts, that such rental payments are deductible as ordinary and necessary business expenses under section 162(a)(3), I.R.C. 1954. Albert T. Felix, 21 T.C. 794, followed. I. L. Van Zandt, 40 T.C. 824, affd. 341 F. 2d 440, distinguished.

Held, an agreement entered into by petitioner corporation to sell substantially all of its assets to a new corporation provided for the… Held: an agreement entered into by petitioner corporation to sell substantially all of its assets to a new corporation provided for the sale of its entire work-in-process inventory to the new corporation, thereby satisfying the requirements of section 337(b)(2) in respect of the work-in-process and bringing into play the nonrecognition…

The X partnership, in the business of constructing and selling houses in a certain tract, had 24 remaining uncompleted houses, which… Held: that, under the facts of record, petitioners did not in substance make any sale of their partnership interests; and (2) that in any event the contracts of sale of the 24 houses were unrealized receivables within section 751, and amounts received by the partners must be regarded as attributable to such contracts with the consequence…

Held, on these facts, that amounts allocated by the purchaser to petitioners' covenants not to compete, which accompanied their sale of the stock of a small loan company, were in reality payments… Held: on these facts, that amounts allocated by the purchaser to petitioners' covenants not to compete, which accompanied their sale of the stock of a small loan company, were in reality payments for corporate assets, thus making the payments so received taxable as capital gains.

In 1959 and 1960 petitioner manufactured shirts and jumpers for the armed services under contracts requiring it either to deposit the cash equivalent of the value of the Government-furnished material… Held: that petitioner's profits for 1959 and 1960 were not excessive.

A portion of petitioner's earnings during the years in issue was accumulated beyond the reasonable needs of its business. Held: accumulated earnings tax not applicable, since petitioner has shown by the preponderance of the evidence that it was not availed of during the years in issue for the purpose of avoiding the income tax with respect to its stockholder by permitting its earnings to accumulate instead of being distributed.

Held, that petitioner Arnold G. Pessin realized unreported income in the taxable year here involved, in connection with the purchase and sale… Held: that petitioner Arnold G. Pessin realized unreported income in the taxable year here involved, in connection with the purchase and sale of four thoroughbred yearling horses. Held, further, that said petitioner also realized unreported income during the taxable year, in connection with the sale of a racehorse named Shirley Jones.

Under decedent's will the remainder of her estate was placed in trust with instructions to the trustee To pay over to my husband during his lifetime the entire net income derived from my estate and… Held: decedent's husband was given an unlimited power to invade the principal of the trust and the value of the trust qualifies for the marital deduction.

Petitioner was the principal shareholder of P corporation. Held: The payment of $ 261,968.74 did not constitute a deductible loss under section 165 (c)(2), I.R.C. 1954. The transaction was not entered into for profit, since petitioner's prime motive for executing the guaranty agreement was to acquire T corporation stock, and he could at best hope that he would not sustain a loss in the transaction.

Petitioners were charter participants in a profit-sharing plan established by their corporate employer under a trust agreement dated July 24, 1950. Held: Petitioners' private agreements not to exercise their withdrawal privileges cannot alter the plain meaning and effect of the trust instrument.

Held, the payment of 73 percent of the premium on a contract of life insurance within a period of 4 years from the date on which the contract was purchased does not constitute payment of… Held: the payment of 73 percent of the premium on a contract of life insurance within a period of 4 years from the date on which the contract was purchased does not constitute payment of substantially all the premiums on the contract within the meaning of section 264(b)(1), I.R.C. 1954.

Income of a trust established by petitioners is taxable to them because the trust failed to satisfy the requirements of section 673(a), I.R.C. 1954.

1. Held, that where transferor corporation failed to distribute all of its assets (less those retained to meet claims) to its stockholders… Held: that where transferor corporation failed to distribute all of its assets (less those retained to meet claims) to its stockholders within 12 months after adopting a plan of complete liquidation, it is not entitled to the benefits of the nonrecognition-of-gain provisions of section 337(a), I.R.C. 1954, with respect to gain realized…

Held: Petitioner-owners of annual-premium life insurance policies issued prior to August 6, 1963, entitled to deduct interest paid on… Held: Petitioner-owners of annual-premium life insurance policies issued prior to August 6, 1963, entitled to deduct interest paid on policy loans issued under self-funding life insurance plan despite fact that petitioners' payments were made to a lending agency which purportedly loaned petitioners money on the security of the policies,…

Jurisdiction -- Sec. 6871. -- Petitioner made an assignment for the benefit of her creditors. Held: the assignment and proceedings pursuant thereto were the equivalent of the appointment of a receiver in a receivership proceeding in a State court and the filing thereafter of the petition with the Tax Court is prohibited by section 6871(b).

The petitioners in 1960 suffered a loss, not compensated for to any extent by insurance or otherwise, from the destruction by storm of boxwood bushes located at their… Held: that such loss is not deductible as an ordinary loss under section 165(c)(3) of the Internal Revenue Code of 1954, but must be applied, pursuant to the provisions of section 1231 of the Code, in reduction of the petitioners' gains from sales of property used in the petitioners' trade or business.

Petitioner Bentley, a noncompetent ward of the Federal Government and a tribal Indian, raised cattle on tribal lands by authority of a permit issued by the tribe. Held: the absence of any provision in a treaty or Act of Congress exempting from taxation income so derived results in its taxation. Squire v. Capoeman, 351 U.S. 1 (1956), distinguished.

1. Before approving petitioner's subdivision plan or issuing building permits, the village required provision for an adequate sewerage system. Held: the amount which petitioner agreed to pay for the bonds was properly allocated to the cost basis of land. 2.

In the taxable year 1960 the petitioner, pursuant to a plan of complete liquidation, sold its notes and accounts receivable at an amount equal to face value less the balance contained in its reserve… Held: that upon the cessation in 1960 of the necessity for maintaining the reserve for bad debts, the balance in such reserve constituted ordinary income to the petitioner.

Mort Dixon, a prolific songwriter, received royalties from ASCAP which affected a formula under which the size of alimony payments to petitioner, his divorced wife, was determined. Held: such payments after Mort Dixon's death are taxable to petitioner under section 71(a), I.R.C. 1954.

Petitioner, an enlisted man in the U.S. Army, moved to Arizona in February 1944 with his wife and, upon his retirement in November 1944, after 30 years of active… Held: under these facts, petitioner and his wife established domicile in Arizona in February 1944; held, further, retirement pay of a married serviceman domiciled in Arizona upon the date of retirement is community property even though he was unmarried and not domiciled in Arizona during all of said 30-year period.

Held, that the petitioner did not qualify as a small business corporation within the meaning of section 1371 of the Internal Revenue Code of… Held: that the petitioner did not qualify as a small business corporation within the meaning of section 1371 of the Internal Revenue Code of 1954, inasmuch as certain of its stock held in the name of an estate was, in reality, held by a trust, and that therefore an election filed by it under section 1372 of the Code was ineffective to…

Held: Lease-option agreement was in effect a sale of the property referred to therein thereby terminating petitioner's holding period of the property on the effective date of the agreement. Held: Lease-option agreement was in effect a sale of the property referred to therein thereby terminating petitioner's holding period of the property on the effective date of the agreement. Petitioner realized a short-term capital gain on the transaction.

1. Petitioner purchased 10 ships from a single seller by the issuance of 300,000 shares of its own previously unissued stock. Held: the basis to petitioner of the two ships resold is determined by the fair market value of the stock issued to purchase them; the fair market value of such stock was $ 30 per share. 2.

The petitioner was organized on July 9, 1934, and for the years 1929 through 1933 used the loss ratio experience of a certain bank in the locality and an adapted loss ratio experience of that bank… Held: that the balance of the petitioner's reserve for bad debts on January 1, 1957, was adequate and reasonable for the taxable years 1957 through 1960 without any additions thereto for those years.

Held: 1. Petitioner did not provide more than half of the support of his stepfather in 1962. 2. Petitioner provided over half of the support of his five children in 1962. 3. Held: Petitioner did not provide more than half of the support of his stepfather in 1962. 2. Petitioner provided over half of the support of his five children in 1962. 3.

1. Held, an amount received by petitioner in 1957 in connection with the sale of certain stock constituted short-term rather than long-term capital gain. 2. Held: an amount received by petitioner in 1957 in connection with the sale of certain stock constituted short-term rather than long-term capital gain. 2. Petitioner paid a certain amount to a corporation in 1958.

Fair market value of personal property donated to charity determined. Value of high-quality household furnishings and expensive fur coats not limited to prices received at unrestricted auction sales conducted soon after property was donated to charity.

Held, decedent never had control, receipt, custody, disposal or payment of any items of income belonging to any nonresident alien and is therefore not… Held: decedent never had control, receipt, custody, disposal or payment of any items of income belonging to any nonresident alien and is therefore not liable as a withholding agent for the 30-percent withholding tax under the provisions of sections 143(b) and 1441 of the Internal Revenue Codes of 1939 and 1954, respectively.

Petitioner is a citizen of Belgium. He is a professional writer who earns his living by writing fiction and granting various rights to others in his literary works in return for royalties. He entered the United States under a permanent visa in 1947 and maintained a residence here thereafter. He carried on a business in the United States as an author. He went to Europe with his family on March 19, 1955; he lived in France until June 20, 1956, and then lived in Switzerland thereafter. He received author's royalties from U.S. sources in 1955 after March 20, which he claims were exempt from the U.S. income tax under article 7 of the tax convention with France. Held: (1) Petitioner failed to prove that he was a "resident" of France within the meaning of that term in article 7 of the convention. (2) Petitioner had a "permanent establishment" in the United States during part of 1955, from January 1 to March 19, within the meaning of that term as used in article 7 of the convention. (3) The U.S. source royalties received by petitioner in 1955, after March 19, 1955, are not exempt from the U.S. income tax under article 7 of the convention, and section 514.109 of the respondent's regulations adopted thereunder in T.D. 5499, 1946-1 C.B. 134.

Pursuant to a divorce decree obtained by his then wife, petitioner transferred a secondary life estate in certain property to his wife with the remainder to his two adult daughters, reserving unto… Held: the transfer of a remainder interest in the property to the two adult daughters was not for an adequate and full consideration in money or money's worth, and the value thereof is includable in decedent's gross estate under section 2036, I.R.C. 1954.