Kay v. Commissioner
United States Board of Tax Appeals
X, recently a widower, offered to give petitioner, his niece, 300 shares of A.T. & T. Co. stock if she would come to his home to live with him and his family in Illinois. Petitioner accordingly gave up a position in New York paying a salary of $5,400 a year and went to her uncle's home in Illinois. The arrangement was not satisfactory and while petitioner was away on a short trip she was told by her uncle not to return.
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X, recently a widower, offered to give petitioner, his niece, 300 shares of A.T. & T. Co. stock if she would come to his home to live with him and his family in Illinois. Petitioner accordingly gave up a position in New York paying a salary of $5,400 a year and went to her uncle's home in Illinois. The arrangement was not satisfactory and while petitioner was away on a short trip she was told by her uncle not to return. Her uncle having failed to turn over the stock to her, petitioner brought suit against him for breach of contract. In settlement of this suit petitioner received in the…
1Opinion of the Court
*101OPINION.
Kern :
The first issue to be considered is whether the $28,281.25 received by petitioner during the taxable year is taxable income. Respondent asserts that a contract existed between Kleinschmidt and petitioner, and that any amounts received by reason thereof, whether in performance of the contract, by judgment of court, or by way of settlement, constitute income within the meaning of section 22 (a) of the Revenue Act of 1934. Petitioner, on the other hand, argues that a contract never existed between herself and Kleinschmidt; that Kleinschmidt’s offer was clearly to make a gift, and…
2Cases cited4 opinions
- Hort v. CommissionerSupreme Court of the United States · 1941
- Allegheny College v. National Chautauqua County Bank of JamestownNew York Court of Appeals · 1927
- Walton Water Co. v. . Village of WaltonNew York Court of Appeals · 1924
- Nikulnikoff v. Archbishop & Consistory of the Russian Orthodox Greek Catholic ChurchNew York Supreme Court · 1932
3Cited by1 opinion
- Kay v. CommissionerUnited States Board of Tax Appeals · 1941