Seatree v. Commissioner
United States Board of Tax Appeals
1. Under articles of partnership petitioner was entitled to receive amounts equal to four shares of the firm profits for a period of three years after his retirement from the partnership. By irrevocable instrument he assigned all his right, title and interest therein to a trustee for benefit of his minor daughters.
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1. Under articles of partnership petitioner was entitled to receive amounts equal to four shares of the firm profits for a period of three years after his retirement from the partnership. By irrevocable instrument he assigned all his right, title and interest therein to a trustee for benefit of his minor daughters. Held, that petitioner's interest was in the nature of a capital asset; that the assignment thereof transferred, not income but a property right, and that income subsequently arising therefrom was not taxable to petitioner. 2. Stipulation as to date of delivery of assignment…
1Opinion of the Court
*400OPINION.
GoodRici-i:
It is well settled that an assignment of income does not relieve the assignor of the tax thereon, but that if property or property rights are assigned the income subsequently arising therefrom is not taxable to the assignor, for the reason that the property no longer belongs to him and therefore the income from such property belongs, not to him, but to the new owner. J. V. Leydig, 15 B. T. A. 124; affd., 43 Fed. (2d) 494; Wallace Huntington et al., 15 B. T. A. 851; Marshall Field, 15 B. T. A. 718; Grace Scripps Clark, 16 B. T. A. 453; Arthur F. Hall, 17 B. T. A. 752;…
2Cases cited5 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Corliss v. BowersSupreme Court of the United States · 1930
- Williams v. WhittellAppellate Division of the Supreme Court of the State of New York · 1902
- Hull v. HullAppellate Division of the Supreme Court of the State of New York · 1916
- Lessler v. De LoynesAppellate Division of the Supreme Court of the State of New York · 1912
3Cited by40 opinions
- Jasionowski v. CommissionerUnited States Tax Court · 1976
- Browne v. CommissionerUnited States Tax Court · 1980
- Kahr v. CommissionerUnited States Tax Court · 1967
- Bijou Park Properties, Inc. v. CommissionerUnited States Tax Court · 1966
- Weinberg v. CommissionerUnited States Tax Court · 1965
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