Denny v. Commissioner
United States Board of Tax Appeals
1. A motion picture corporation in 1925 loaned $11,000 to petitioner, an actor employed by it, to be repaid in 1926 in the event that the corporation did not exercise an option to continue to employ the petitioner.
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1. A motion picture corporation in 1925 loaned $11,000 to petitioner, an actor employed by it, to be repaid in 1926 in the event that the corporation did not exercise an option to continue to employ the petitioner. The corporation exercised the option in 1926. Held, that the $11,000 was income to petitioner in 1926. 2. The cost to petitioner of dental bridge work to replace teeth knocked out in making a prize fight picture, held, deductible as a business expense. 3. Petitioner purchased an airplane for personal use in 1924. It was converted to commercial use in 1925. Held, that the petitioner…
1Opinion of the Court
*742OPINION.
ÁRUndell:
The first question is whether the sum of $11,000 received by petitioner from Universal Pictures Corporation was income, and, if so, in what year. The petitioner claims that it was a gift, but that if it was income, it was income in 1925 rather than 1926.
The claim that the sum was a gift needs but a short statement.' It is elementary that if there is. consideration for a transaction, it is not a gift. Noel v. Parrott, 15 Fed. (2d) 669. Here there was a consideration. The transaction was in connection with the .contract of employment and the money ivas to become the property of…
2Cases cited4 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Old Mission Portland Cement Co. v. HelveringSupreme Court of the United States · 1934
- Heiner v. TindleSupreme Court of the United States · 1928
3Cited by29 opinions
- Louis Greenspon v. Commissioner of Internal Revenue, (Three Cases). Anna Greenspon v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1956
- Hill v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1950
- Hynes v. CommissionerUnited States Tax Court · 1980
- Helvering v. Jane Holding CorporationCourt of Appeals for the Eighth Circuit · 1940
- Westerman v. CommissionerUnited States Tax Court · 1970
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